Discounted Cash Flow

Equity Residential REIT

EQR · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $2.4b $4.3b $1.1b 176.9% $11.75
2017 $2.5b (1.9%) $603.5m (-85.9%) $1.3b (13.9%) 24.4% (-86.2%) $1.64 (-86.0%)
2018 $2.6b (4.3%) $657.5m (9.0%) $1.4b (7.2%) 25.5% (4.4%) $1.78 (8.5%)
2019 $2.7b (4.8%) $970.4m (47.6%) $1.5b (7.4%) 35.9% (40.9%) $2.61 (46.6%)
2020 $913.6m (-5.8%) $1.3b (-13.1%) $2.45 (-6.1%)
2021 $1.3b (45.9%) $1.3b (-0.4%) $3.56 (45.3%)
2022 $776.9m (-41.7%) $1.2b (-3.0%) $2.06 (-42.1%)
2023 $835.4m (7.5%) $1.2b (-1.9%) $2.20 (6.8%)
2024 $1.0b (24.0%) $1.3b (4.6%) $2.73 (24.1%)
2025 $1.1b (8.1%) $1.3b (2.8%) $2.95 (8.1%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model