MeritValue

ESSEX PROPERTY TRUST, INC.

ESSdata completeness 75%18 fiscal years on file

Data notes: no data for concept 'pretaxIncome'

The thesis, from the filings

ESSEX PROPERTY TRUST, INC. earns about 10% on equity, with a roughly flat share count. The applicable estimate puts fair value near $82.98 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$9.14M1$11.1M2$11.1M3$10.3M3$9.38M3
Net income$515.7M4$433M5$430.7M6$811.3M6$702.8M6
Operating cash flow$905.3M7$975.6M8$980.1M9$1.07B9$1.07B9
Capital expenditure—————
Free cash flow (derived)—————
Total debt$639M10————
Cash & equivalents$48.4M11$33.3M12$391.7M13$66.8M13$76.2M13
Diluted shares65.1M65.1M64.3M64.3M64.4M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$860.47
your share of equity
Profit it earned you last year
$109.13
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $860.47 of net worth that earned you $109.13 last year.

iii. Is this a good business?
Moat signal · return on equity
10% avg · 5y
FY21 9%FY22 8%FY23 8%FY24 15%FY25 13%

It earned an average 10% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−1% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$82.98
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$515.7M
  • growthAssumed0.0%
Graham Number
$141.9
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000920522-24-000033 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0000920522-25-000024 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0000920522-26-000003 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0000920522-24-000033 (ProfitLoss)
  5. 10-K · period ending 2022-12-31 · accession 0000920522-25-000024 (ProfitLoss)
  6. 10-K · period ending 2023-12-31 · accession 0000920522-26-000003 (ProfitLoss)
  7. 10-K · period ending 2021-12-31 · accession 0000920522-24-000033 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0000920522-25-000024 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0000920522-26-000003 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0000920522-22-000019 (LongTermDebt)
  11. 10-K · period ending 2021-12-31 · accession 0000920522-24-000033 (CashAndCashEquivalentsAtCarryingValue)
  12. 10-K · period ending 2022-12-31 · accession 0000920522-25-000024 (CashAndCashEquivalentsAtCarryingValue)
  13. 10-K · period ending 2023-12-31 · accession 0000920522-26-000003 (CashAndCashEquivalentsAtCarryingValue)