Essex Property Trust, Inc. (ESS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+157.4%

$682.46

vs $265.12 price

Levered DCF

$446.88

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

1.57

Distress zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	25.14×	24.71×	39.23×	33.8×	46.9×	27.32×	45.11×	41.49×
P/B	3.04×	3.31×	2.94×	2.41×	3.82×	2.59×	3.18×	2.58×
P/S	8.88×	10.33×	9.54×	8.58×	15.91×	10.39×	13.57×	11.57×
EV / EBITDA	15.16×	15.32×	18.3×	16.54×	19.43×	13.53×	18.19×	16.09×
Gross margin	68.8%	68.1%	68.1%	69.0%	83.9%	85.9%	87.0%	86.9%
Operating margin	43.9%	39.6%	35.0%	37.0%	36.8%	32.9%	32.9%	36.6%
Net margin	35.4%	41.8%	24.3%	25.4%	33.9%	38.0%	30.1%	27.9%
Current ratio	2.3×	0.66×	1.88×	0.66×	0.85×	1.36×	0.91×	1.37×
Debt / equity	1.25×	1.2×	1.16×	1.05×	1.06×	1.05×	0.95×	0.89×
Interest coverage	3.24×	2.99×	2.74×	2.66×	2.61×	2.23×	2.21×	2.32×
Dividend yield	3.9%	3.4%	3.7%	4.1%	2.4%	3.4%	2.6%	3.0%
Payout ratio	97.3%	83.7%	144.6%	138.6%	111.1%	94.2%	115.6%	124.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.1%	13.4%	7.5%	7.1%	8.2%	9.5%	7.1%	6.2%
Return on invested capital	6.1%	5.6%	4.9%	4.9%	4.2%	3.9%	3.9%	4.2%
Return on assets	5.1%	5.7%	3.3%	3.3%	3.8%	4.4%	3.5%	3.2%
Free cash flow yield	5.5%	5.1%	5.3%	5.9%	3.4%	4.6%	4.1%	4.6%
Earnings yield	4.0%	4.0%	2.5%	3.0%	2.1%	3.7%	2.2%	2.4%
Enterprise value	$23.7B	$24.9B	$21.8B	$19.8B	$29.2B	$21.8B	$25.6B	$21.7B
Net debt / EBITDA	4.36×	4.05×	4.93×	5.01×	4.2×	3.88×	4.13×	4.06×
Cash conversion cycle (days)	-109	-94	-83	-98	-198	-116	-271	-234