Equity Residential EBITDA vs. Price To Sales

EQR Stock  USD 76.66  0.82  1.06%   
Taking into consideration Equity Residential's profitability measurements, Equity Residential's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Equity Residential's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
1.2 B
Current Value
1.4 B
Quarterly Volatility
501.9 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Equity Residential's Days Sales Outstanding is relatively stable compared to the past year. As of 11/30/2024, Sales General And Administrative To Revenue is likely to grow to 0.02, while EV To Sales is likely to drop 8.09. At this time, Equity Residential's Accumulated Other Comprehensive Income is relatively stable compared to the past year. As of 11/30/2024, Income Tax Expense is likely to grow to about 41.6 M, while Operating Income is likely to drop slightly above 673.3 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.780.6359
Fairly Up
Pretty Stable
Net Profit Margin0.280.2907
Sufficiently Down
Very volatile
Operating Profit Margin0.240.4038
Way Down
Slightly volatile
Return On Assets0.0360.0417
Fairly Down
Very volatile
Return On Equity0.080.0754
Notably Up
Pretty Stable
For Equity Residential profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Equity Residential to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Equity Residential utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Equity Residential's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Equity Residential over time as well as its relative position and ranking within its peers.
  

Equity Residential's Revenue Breakdown by Earning Segment

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Is Multi-Family Residential REITs space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Equity Residential. If investors know Equity will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Equity Residential listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.17)
Dividend Share
2.688
Earnings Share
2.37
Revenue Per Share
7.762
Quarterly Revenue Growth
0.034
The market value of Equity Residential is measured differently than its book value, which is the value of Equity that is recorded on the company's balance sheet. Investors also form their own opinion of Equity Residential's value that differs from its market value or its book value, called intrinsic value, which is Equity Residential's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Equity Residential's market value can be influenced by many factors that don't directly affect Equity Residential's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Equity Residential's value and its price as these two are different measures arrived at by different means. Investors typically determine if Equity Residential is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Equity Residential's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Equity Residential Price To Sales vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Equity Residential's current stock value. Our valuation model uses many indicators to compare Equity Residential value to that of its competitors to determine the firm's financial worth.
Equity Residential is rated # 5 in ebitda category among its peers. It is rated # 4 in price to sales category among its peers . The ratio of EBITDA to Price To Sales for Equity Residential is about  113,840,880 . At this time, Equity Residential's EBITDA is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Equity Residential by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Equity Price To Sales vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Equity Residential

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
1.16 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Equity Residential

P/S

 = 

MV Per Share

Revenue Per Share

 = 
10.19 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Equity Price To Sales Comparison

Equity Residential is currently under evaluation in price to sales category among its peers.

Equity Residential Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Equity Residential, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Equity Residential will eventually generate negative long term returns. The profitability progress is the general direction of Equity Residential's change in net profit over the period of time. It can combine multiple indicators of Equity Residential, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income5.7 MM
Operating Income1.2 B673.3 M
Income Before Tax875 M670.3 M
Net Income835.4 M745 M
Income Tax Expense39.6 M41.6 M
Total Other Income Expense Net-285.6 M-271.3 M
Net Income Applicable To Common Shares889.9 M779.4 M
Net Income From Continuing Ops1.1 B998.5 M
Non Operating Income Net Other-19 M-18 M
Interest Income8.6 M8.2 M
Net Interest Income-267.4 M-280.8 M
Change To Netincome-240 M-252 M
Net Income Per Share 2.21  1.90 
Income Quality 1.83  1.63 
Net Income Per E B T 0.95  0.91 

Equity Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Equity Residential. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Equity Residential position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Equity Residential's important profitability drivers and their relationship over time.

Use Equity Residential in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Equity Residential position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Equity Residential will appreciate offsetting losses from the drop in the long position's value.

Equity Residential Pair Trading

Equity Residential Pair Trading Analysis

The ability to find closely correlated positions to Equity Residential could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Equity Residential when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Equity Residential - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Equity Residential to buy it.
The correlation of Equity Residential is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Equity Residential moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Equity Residential moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Equity Residential can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Equity Residential position

In addition to having Equity Residential in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Momentum Thematic Idea Now

Momentum
Momentum Theme
Large corporations operating in software, education, financial and car manufacturing industries. The Momentum theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Momentum Theme or any other thematic opportunities.
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Additional Tools for Equity Stock Analysis

When running Equity Residential's price analysis, check to measure Equity Residential's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Equity Residential is operating at the current time. Most of Equity Residential's value examination focuses on studying past and present price action to predict the probability of Equity Residential's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Equity Residential's price. Additionally, you may evaluate how the addition of Equity Residential to your portfolios can decrease your overall portfolio volatility.