Stock fact sheet · data as of
Essex Property Trust, Inc. (ESS): fair value, margin of safety and Wheel Score
Real Estate · REIT - Residential · United States · Defensive
Is ESS undervalued?
ESS closed at 269.66 on 16 Oct 2026, which is 17% above the GLS average fair value of 230.97 from 9 models. 6 of them value the shares below today's price. Our screens read that as "no margin of safety": the stock is not a value candidate at this price, whatever the quality numbers say.
There is a wide gap between GLS Growth (69.28) and DCF (631.42). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files ESS under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for ESS
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 631.42 | +134% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 109.60 | -59% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 232.50 | -14% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 91.42 | -66% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 69.28 | -74% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 330.51 | +23% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 390.06 | +45% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 152.15 | -44% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 71.83 | -73% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -111.96 | -142% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 300.77 | +12% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Essex Property Trust, Inc. scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. On durability ESS scores 6.5/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are moderate - ROIC 5.4%, ROE 12.1%, ROA 5.1% - with debt at 1.25 times equity and a free-cash-flow yield of 6.0%.
The dividend yield is 3.83% at a payout ratio of 159%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Management And Other Fees From Affiliat… 100% (quarter Q2 FY2025).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 5.4% |
|---|---|---|---|
| GLS Moat | 6.5 / 10 | ROE | 12.1% |
| Debt / equity | 1.25 | ROA | 5.1% |
| Free-cash-flow yield | 6.0% | Payout ratio | 159% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 58: Fair
A Wheel Score of 58 puts Essex Property Trust, Inc. in the Fair band - below the 70 the Sunday Scan requires. Value 6/25, Health 13/20, Moat 10/15, Premium 14/20 and Stability 16/20; the weakest part is Value (6/25).
Implied volatility is 29% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (14 of 20 points). Chain open interest is 2,747 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 427k shares a day on a market cap of $17.3B, with a beta of 0.71 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 16 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 6 / 25 | -17% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 10 / 15 | moat 6.5/10 | |
| Premium | 14 / 20 | implied volatility 29% | |
| Stability | 16 / 20 | 427k shares/day, $17.3B cap, beta 0.71 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Essex Property Trust, Inc. reports earnings on 27 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in REIT - Residential
The 12 companies below are the closest to Essex Property Trust, Inc. by market cap within the REIT - Residential industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| INVH Invitation Homes Inc. | 26.80 | 21.36 | -25% | 55Fair | $15.8B |
| SUI Sun Communities, Inc. | 114.24 | 90.77 | -26% | 45Weak | $13.9B |
| MAA Mid-America Apartment Communities, Inc. | 116.27 | 72.10 | -61% | 50Fair | $13.5B |
| VMRK Vivmark Residential | 60.80 | 59.36 | -2% | 65Good | $22.8B |
| ELS Equity LifeStyle Properties, Inc. | 60.25 | 28.93 | -108% | 58Fair | $11.7B |
| AMH American Homes 4 Rent | 30.97 | 30.76 | -1% | 80Prime | $11.1B |
| UDR UDR, Inc. | 33.96 | 30.05 | -13% | 63Fair | $10.9B |
| CPT Camden Property Trust | 98.19 | 84.06 | -17% | 56Fair | $9.9B |
| IRT Independence Realty Trust, Inc. | 14.70 | 7.98 | -84% | 54Fair | $3.5B |
| MRP Millrose Properties, Inc. | 22.22 | 156.58 | +86% | 82Prime | $3.4B |
| UMH UMH Properties, Inc. | 15.03 | 13.17 | -14% | 56Fair | $1.3B |
| CSR Centerspace | 55.88 | 74.14 | +25% | 71Good | $939M |
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Start free See the Sunday ScanQuestions about ESS
Is ESS undervalued right now?
No: at 269.66 the stock trades 17% above the GLS average fair value of 230.97 (data as of 16 Oct 2026). The margin of safety is negative.
What is the Wheel Score of ESS and what does it mean?
ESS scores 58 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for ESS?
230.97 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Essex Property Trust, Inc. report earnings next?
The next earnings report is due on 27 Oct 2026 (after the close), 11 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does ESS have listed options, and how liquid are they?
Yes. The nightly snapshot found 286 listed contracts with 2,747 open interest across all expiries and implied volatility of 29% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.