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Highest P/E Ratio in the Residential REITs Industry Detected in Shares of American Campus (ACC, IRT, EQR, AVB, MAA)

By Shiri Gupta

Below are the three companies in the Residential REITs industry with the highest price to earnings (P/E) ratios. P/E is an important valuation tool when comparing companies in the same industry. A higher P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio.

American Campus ranks highest with a a P/E ratio of 79.81. Following is Independence Rea with a a P/E ratio of 73.75. Equity Residenti ranks third highest with a a P/E ratio of 73.38.

Avalonbay Commun follows with a a P/E ratio of 69.81, and Mid-America Apar rounds out the top five with a a P/E ratio of 68.98.

SmarTrend recommended that its subscribers protect gains by selling shares of Equity Residenti on November 5th, 2019 by issuing a Downtrend alert when the shares were trading at $85.19. Since that call, shares of Equity Residenti have fallen 5.6%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest p/e ratio american campus independence rea equity residenti avalonbay commun mid-america apar