Equity ResidentialLTS:0IIB +1.00%75 Pretax Margin % is 12.25% as of Mar. 2026, which is 66% below its 10-year median of 35.53. GuruFocus rates LTS:0IIB with a GF Score™ of 75/100 and a GF Value™ of $69.44 (Fairly Valued). The stock has 6 warning signs investors should review. Among 932 REITs companies, Equity Residential ranks worse than 63.41% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Equity Residential Pretax Margin % Related Terms
Equity Residential Pretax Margin % Historical Data
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The historical data trend for Equity Residential's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LTS:0IIB vs AVB, ESS, INVH: Pretax Margin % Comparison
For the REIT - Residential subindustry, Equity Residential's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Equity Residential Pretax Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Equity Residential's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Equity Residential's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Equity Residential (LTS:0IIB) has a Pretax Margin % of 12.25% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Equity Residential and its competitors. This is 66% below median its historical median of 35.53. Over the past decade, Equity Residential's Pretax Margin % has ranged from 24.81 to 183.88. According to the industry distribution chart, Equity Residential ranks #591 out of 932 companies in the REITs industry, placing it in the top 63.4%.
Is Equity Residential's Pretax Margin % too high?
Equity Residential's current Pretax Margin % of 12.25% is 66% below median its 10-year median of 35.53. Over the past 10 years, this metric has ranged from a low of 24.81 to a high of 183.88. The REITs industry median Pretax Margin % is 46.82. Equity Residential's value of 12.25% is 73.8% below this industry median. Based on the distribution chart, Equity Residential ranks #591 out of 932 companies in the REITs industry, which is below the industry midpoint. Overall, Equity Residential has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Equity Residential's Pretax Margin % compare to AVB and ESS?
According to the REITs industry distribution chart, Equity Residential ranks #591 out of 932 companies for Pretax Margin %. This places Equity Residential in the lower half of its industry. The industry median Pretax Margin % is 46.82. Equity Residential's value of 12.25% is 73.8% below this benchmark. Historically, Equity Residential's own Pretax Margin % has ranged from 24.81 to 183.88 over the past decade. While the company's 10-year median is 35.53 vs. the industry median of 46.82, Equity Residential has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a REITs company?
The median Pretax Margin % among REITs companies is 46.82, based on 932 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Equity Residential's current Pretax Margin % of 12.25% is 73.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Equity Residential and its competitors. For the REITs industry, the median Pretax Margin % is 46.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Equity Residential's current Pretax Margin % is 12.25%, which is 66% below median its own 10-year median of 35.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Equity Residential stock overvalued right now?
Based on GuruFocus' analysis, Equity Residential (LTS:0IIB) is currently considered Fairly Valued. The stock's GF Value™ is $69.44, compared to a current price of $67.73 — trading 2.5% below its estimated fair value. The current Pretax Margin % is 12.25%, which is 66% below median its 10-year median of 35.53 and 73.8% below the REITs industry median of 46.82. Equity Residential's overall GF Score™ is 75/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Equity Residential (LTS:0IIB), the current Pretax Margin % is 12.25% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Equity Residential (LTS:0IIB) Overvalued in 2026?
Based on GuruFocus' analysis, Equity Residential stock appears to be undervalued.
The current stock price of $67.73 is trading 2.5% below its estimated GF Value™ of $69.44.
GuruFocus considers Equity Residential to be Fairly Valued.
Key valuation signals for LTS:0IIB:
Pretax Margin %: 12.25% (66% below median its 10-year median of 35.53)
GF Value™: $69.44 vs. price of $67.73 (2.5% below fair value)
Industry Position: 73.8% below the REITs median (#591 of 932)
No single metric tells the full story. See the LTS:0IIB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Equity Residential owns a portfolio of 312 apartment communities with over 85,000 units and is developing two additional properties with 665 units. The company focuses on owning large, high-quality properties in the urban and suburban submarkets of Southern California, San Francisco, Washington, D.C., New York, Seattle, and Boston.
75GF Score
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