ARCC Relative Valuation
ARCC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ARCC is overvalued; if below, it's undervalued.
Historical Valuation
Ares Capital Corp (ARCC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 8.97 is considered Undervalued compared with the five-year average of 9.42. The fair price of Ares Capital Corp (ARCC) is between 21.80 to 25.80 according to relative valuation methord. Compared to the current price of 20.82 USD , Ares Capital Corp is Undervalued By 4.48%.
Relative Value
Fair Zone
21.80-25.80
Current Price：20.82
4.48%
Undervalued
9.05
PE
1Y
3Y
5Y
Trailing
Forward
0.00
EV/EBITDA
Ares Capital Corp. (ARCC) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBITDA of 0.00 falls within the Strongly Undervalued range.
0.00
EV/EBIT
Ares Capital Corp. (ARCC) has a current EV/EBIT of 0.00. The 5-year average EV/EBIT is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBIT of 0.00 falls within the Strongly Undervalued range.
5.15
PS
Ares Capital Corp. (ARCC) has a current PS of 5.15. The 5-year average PS is 4.62. The thresholds are as follows: Strongly Undervalued below 3.57, Undervalued between 3.57 and 4.09, Fairly Valued between 5.15 and 4.09, Overvalued between 5.15 and 5.67, and Strongly Overvalued above 5.67. The current Forward PS of 5.15 falls within the Overvalued range.
-7.01
P/OCF
Ares Capital Corp. (ARCC) has a current P/OCF of -7.01. The 5-year average P/OCF is -7.54. The thresholds are as follows: Strongly Undervalued below -58.19, Undervalued between -58.19 and -32.86, Fairly Valued between 17.79 and -32.86, Overvalued between 17.79 and 43.12, and Strongly Overvalued above 43.12. The current Forward P/OCF of -7.01 falls within the Historic Trend Line -Fairly Valued range.
0.00
P/FCF
Ares Capital Corp. (ARCC) has a current P/FCF of 0.00. The 5-year average P/FCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/FCF of 0.00 falls within the Strongly Undervalued range.
Ares Capital Corp (ARCC) has a current Price-to-Book (P/B) ratio of 1.06. Compared to its 3-year average P/B ratio of 1.07 , the current P/B ratio is approximately -0.83% higher. Relative to its 5-year average P/B ratio of 1.07, the current P/B ratio is about -1.15% higher. Ares Capital Corp (ARCC) has a Forward Free Cash Flow (FCF) yield of approximately -2.59%. Compared to its 3-year average FCF yield of -3.02%, the current FCF yield is approximately -14.49% lower. Relative to its 5-year average FCF yield of -8.88% , the current FCF yield is about -70.89% lower.
1.07
P/B
Median3y
1.07
Median5y
1.07
-2.56
FCF Yield
Median3y
-3.02
Median5y
-8.88
Competitors Valuation Multiple
The average P/S ratio for ARCC's competitors is 5.15, providing a benchmark for relative valuation. Ares Capital Corp Corp (ARCC) exhibits a P/S ratio of 5.15, which is 0.00% above the industry average. Given its robust revenue growth of 13.86%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ARCC decreased by 0.07% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 808.00M to 920.00M.
The secondary factor is the P/E Change, contributed -3.98%to the performance.
Overall, the performance of ARCC in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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