The historical rank and industry rank for Equity Residential's ROE % or its related term are showing as below:
LTS:0IIB'
s ROE % Range Over the Past 10 Years
Min: 5.9 Med: 9.07 Max: 41.47
Current: 8.69
During the past 13 years, Equity Residential's highest ROE % was 41.47%. The lowest was 5.90%. And the median was 9.07%.
LTS:0IIB's ROE % is ranked better than 67.63% of 933
companies
in the REITs industry
Industry Median: 6.2
vs LTS:0IIB: 8.69
Equity Residential (LTS:0IIB) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Equity Residential ROE % Related Terms
Equity Residential ROE % Historical Data
* Premium members only.
The historical data trend for Equity Residential's ROE % 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.
For the REIT - Residential subindustry, Equity Residential's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs REITs Industry
For the REITs industry and Real Estate sector, Equity Residential's ROE % distribution charts can be found below:
* The bar in red indicates where Equity Residential's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Equity Residential (LTS:0IIB) has a ROE % of 3.32% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Equity Residential and its competitors. This is 63% below median its historical median of 9.07. Over the past decade, Equity Residential's ROE % has ranged from 5.90 to 41.47. According to the industry distribution chart, Equity Residential ranks #302 out of 933 companies in the REITs industry, placing it in the top 32.4%.
Is Equity Residential's ROE % too high?
Equity Residential's current ROE % of 3.32% is 63% below median its 10-year median of 9.07. Over the past 10 years, this metric has ranged from a low of 5.90 to a high of 41.47. The REITs industry median ROE % is 6.20. Equity Residential's value of 3.32% is 46.5% below this industry median. Based on the distribution chart, Equity Residential ranks #302 out of 933 companies in the REITs industry, which is above 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 ROE % compare to AVB and ESS?
According to the REITs industry distribution chart, Equity Residential ranks #302 out of 933 companies for ROE %. This puts Equity Residential in the upper half of its industry. The industry median ROE % is 6.20. Equity Residential's value of 3.32% is 46.5% below this benchmark. Historically, Equity Residential's own ROE % has ranged from 5.90 to 41.47 over the past decade. While the company's 10-year median is 9.07 vs. the industry median of 6.20, 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 ROE % for a REITs company?
The median ROE % among REITs companies is 6.20, based on 933 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Equity Residential's current ROE % of 3.32% is 46.5% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Equity Residential and its competitors. For the REITs industry, the median ROE % is 6.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Equity Residential's current ROE % is 3.32%, which is 63% below median its own 10-year median of 9.07. 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 $69.85, compared to a current price of $65.76 — trading 5.9% below its estimated fair value. The current ROE % is 3.32%, which is 63% below median its 10-year median of 9.07 and 46.5% below the REITs industry median of 6.20. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Equity Residential (LTS:0IIB), the current ROE % is 3.32% 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 $65.76 is trading 5.9% below its estimated GF Value™ of $69.85.
GuruFocus considers Equity Residential to be Fairly Valued.
Key valuation signals for LTS:0IIB:
ROE %: 3.32% (63% below median its 10-year median of 9.07)
GF Value™: $69.85 vs. price of $65.76 (5.9% below fair value)
Industry Position: 46.5% below the REITs median (#302 of 933)
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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