ARCC

Ares Capital Corp

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Advanced Chart

20.660

-0.010(-0.050%)

Overview
Forecast
Valuation

Line

Candle

YTD

High

20.730

Open

20.480

VWAP

20.57

Vol

5.10M

Mkt Cap

14.14B

Low

20.220

Amount

104.83M

EV/EBITDA(TTM)

17.20

Total Shares

614.52M

27.42B

EV/OCF(TTM)

P/S(TTM)

4.88

Ares Capital Corporation is a specialty finance company focused on providing direct loans and other investments in private middle market companies in the United States. The Company invests primarily in first lien senior secured loans (including unitranche loans, which are loans that combine both senior and subordinated debt, generally in a first lien position), and second lien senior secured loans. In addition to senior secured loans, it also invests in subordinated debt, which in some cases includes an equity component, and preferred equity. It also may invest up to 30% of its portfolio in non-qualifying assets. Its investment activities are focused on industries, such as software and services, health care services, commercial and professional services, financial services, commercial and professional services, insurance Services, energy, food and beverage and others. Its investment adviser is Ares Capital Management LLC.

Market Estimates

Earnings Estimates

Revenue

YoY Chg

EPS

YoYChg

FY2025Q2

FY2025Q1

FY2024Q4

784.33M

+3.88%

0.538

-11.88%

769.95M

+9.84%

0.536

-9.22%

787.50M

+11.39%

0.579

-8.06%

Estimates Revision

The market is revising No Change the revenue expectations for Ares Capital Corporation (ARCC) for FY2024, with the revenue forecasts being adjusted by 0% over the past three months. During the same period, the stock price has changed by -11.78%.

Revenue Estimates for FY2024

No Change

0.00%

In Past 3 Month

EPS Estimates for FY2024

Revise Downward

-0.01%

In Past 3 Month

Stock Price

Go Down

-11.78%

In Past 3 Month

9 Analyst Rating

12.15% Upside

Wall Street analysts forecast ARCC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARCC is 23.17 USD with a low forecast of 21.00 USD and a high forecast of 25.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

7 Buy

2 Hold

0 Sell

Strong Buy

12.15% Upside

Current: 20.660

Low

21.00

Averages

23.17

High

25.00

12.15% Upside

Current: 20.660

Low

21.00

Averages

23.17

High

25.00

Wells Fargo

Finian O'Shea

Buy

Maintains

$23 → $22

2025-04-28

New

Reason

Wells Fargo

Finian O'Shea

Price Target

$23 → $22

2025-04-28

New

Maintains

Buy

Reason

JP Morgan

Melissa Wedel

Buy

Maintains

$25 → $22

2025-04-24

Reason

JP Morgan

Melissa Wedel

Price Target

$25 → $22

2025-04-24

Maintains

Buy

Reason

UBS

Doug Harter

Hold

Maintains

$22 → $21

2025-04-17

Reason

UBS

Doug Harter

Price Target

$22 → $21

2025-04-17

Maintains

Hold

Reason

UBS analyst Doug Harter lowered the firm's price target on Ares Capital to $21 from $22 and keeps a Neutral rating on the shares as part of a Q1 earnings preview for the business development companies. The focus for investors during earnings will be on the outlook for credit quality given the increased economic uncertainty, the analyst tells investors in a research note. The firm says that while the pullback in the sector has made valuations more attractive, the overhang from credit quality concerns and earnings drag from lower short-term rates will persist. UBS cut price targets to reflect a lower return on equity outlook from slower loan growth and lower target multiples given increased economic uncertainty.

Keefe, Bruyette & Woods

Paul Johnson

Buy

Maintains

$23 → $22

2025-04-08

Reason

Keefe, Bruyette & Woods

Paul Johnson

Price Target

$23 → $22

2025-04-08

Maintains

Buy

Reason

Keefe Bruyette lowered the firm's price target on Ares Capital to $22 from $23 and keeps an Outperform rating on the shares.

Keefe, Bruyette & Woods

Paul Johnson

Buy

Maintains

$22 → $23

2025-02-07

Reason

Keefe, Bruyette & Woods

Paul Johnson

Price Target

$22 → $23

2025-02-07

Maintains

Buy

Reason

RBC Capital

Kenneth Lee

Buy

Maintains

$23 → $24

2025-02-07

Reason

RBC Capital

Kenneth Lee

Price Target

$23 → $24

2025-02-07

Maintains

Buy

Reason

See All Ratings

Valuation Metrics

The current forward P/E ratio for Ares Capital Corp (ARCC.O) is 8.99, compared to its 5-year average forward P/E of 9.39. For a more detailed relative valuation and DCF analysis to assess Ares Capital Corp 's fair value, click here.

Forward PE

The forward P/E ratio is a valuation metric that divides a company's current stock price by its estimated future earnings per share over the next 12 months.

Fair

5Y Average PE

9.39

Current PE

8.99

Overvalued PE

10.48

Undervalued PE

8.31

Forward EV/EBITDA

The forward EV/EBITDA ratio is a valuation metric that divides a company's enterprise value (EV) by its estimated future earnings before interest, taxes, depreciation, and amortization (EBITDA) over the next 12 months.

N/A

5Y Average EV/EBITDA

0.00

Current EV/EBITDA

0.00

Overvalued EV/EBITDA

0.00

Undervalued EV/EBITDA

0.00

Forward PS

The forward P/S ratio is a valuation metric that divides a company's current stock price by its estimated future sales (or revenue) per share over the next 12 months.

Fair

5Y Average PS

4.51

Current PS

4.87

Overvalued PS

5.00

Undervalued PS

4.02