- Equity Residential is trading at an 18.7x P/FFO multiple, while its revenue and FFO negative growth don't justify this valuation.
- Many of the company's peers are trading in lower multiples with very strong fundamentals. Even in the case of companies trading at P/FFO, this is supported by exceptionally strong fundamentals.
- The overvaluation thesis is also backed by the recent insider selling along with a negative technical picture.
- Although Equity Residential could be a nice long-term holding, at this point, the risk of a significant bearish movement is higher than the possibility of any potential gain.
For further details see:
Equity Residential: Elevated Valuation On No Grounds