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Essex Property Trust, Inc.

ESS Real Estate Reit Residential

Essex Property Trust, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $1.9 billion, up 6.36% from fiscal 2024.

Revenue
+4.10%
EPS
−37.0%
Free cash flow
−5.14%
Total debt
−0.84%

Quarter to September 2026, against a year earlier

272.41 7.51 +2.84%
Market cap
$17.6B
P/E
48.3×
Fwd P/E
46.4×
Dividend yield
3.90%
F-score
5/9
Altman Z
n/a
Beneish M
n/a
Dividend safety
n/a
Overview Business Profile Earnings & Analysis
Financials
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Essex Property Trust, Inc. (ESS) valuation and DCF model

What the price implies · reverse DCF

At $272.41 the price implies FFO a share growing 3.8% a year for ten years.

FFO a share grew 4.0% a year over the last ten years, −0.8% over the last five. The price asks for close to its ten-year rate. The industry’s median company is priced for 2.8%.

In December 2017 the price assumed 4.3% a year; Essex Property Trust, Inc. went on to grow FFO a share 2.0% a year to FY2025.

FFO a share is worked out from Essex Property Trust, Inc.’s 10-Ks and 10-Qs: net income, plus the depreciation of its property and impairments, less gains on property sales.

Price implies
3.8%
Last 5 years, reported
−0.8%
Last 10 years, reported
4.0%
Industry median implies
2.8%

The headline discounts the last twelve months’ FFO a share at 9.0% for ten years and grows it 2.5% a year after that, the same for every company, so the figure compares across the market (how a reverse DCF works).

The other way round · DCF
The price needs
3.8% a year for ten years
$272.41
today’s price
Its base case
4.0% a year for five years, then 2.4%
$263.10
3.4% below today’s price

Both are growth in FFO a share, discounted at 9.0%, with 2.5% a year after year ten.

Base case on its own ten-year record Essex Property Trust, Inc.’s own growth, carried forward

Its assumptions

Powerpack lets you start from a scenario and type over any of them.

The base case’s inputs, which Powerpack lets you change
1 · FFO a share
the four quarters to September 2026, from the 10-Q and 10-K filings

Yearly growth in FFO a share. It usually slows as the company matures.

Today’s price implies FFO a share growing 3.8% a year for ten years.

2 · Rates

Cost of equity is the yearly return shareholders require, typically 8–11%. Terminal growth is growth forever after year 10, usually near long-run inflation, 2–3%.

3 · Per share

The model is a share’s own: no debt to take off and no shares to divide among.

Advanced inputs

Against Essex Property Trust, Inc.’s own cost of capital: risk-free 4.3% + beta 0.70 × equity premium 4.5% = 7.4% cost of equity; weighted, 7.4%.

Use 7.4%
Base case value per share $263.10 ten years discounted, and what follows
Current price $272.41 market price per share
Below today’s price 3.4% downside at the base case’s assumptions

How we got there$119.92 10 years of FFO+$143.18 terminal value=$263.10 per share

Valuation against its own history

Today’s multiple against its 5- and 10-year averages and the industry median (Reit Residential).

Multiple Current 5Y avg 10Y avg vs 10Y avg Industry median vs industry 10Y range
P/E 48.30× 34.28× 36.87× 31% above 26.83× 80% above
P/FCF 23.87× 41.33× 36.97× 35% below 23.00× 4% above
P/B 3.12× 2.90× 2.88× 8% above 1.73× 80% above
EV/EBITDA 19.65× 18.18× 21.33× 8% below 15.65× 26% above
EV/Sales 12.10× 12.79× 14.73× 18% below 7.85× 54% above
P/FFO 17.37× 16.41× 17.56× 1% below — —
P/E P/FCF P/B EV/EBITDA EV/Sales P/FFO
26.23×33.23×40.22×47.22×10Y avg 36.87×2017201820192020202120222023202420252026

ESS trades at 48.30× P/E, against a 10-year average of 36.87× (range 24.71×–48.30×). That is dearer than 100% of the last 9 year-end readings; re-rating to the average implies $207.97 per share.

Every growth rate on this page is the business’s — its cash flow, FFO or dividend — never its share price’s. A discounted-cash-flow model is only as good as its assumptions. Figures from the 10-K and 10-Q filings. Not investment advice.