Historical Valuation
Ares Capital Corp (ARCC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 8.89 is considered Undervalued compared with the five-year average of 9.41. The fair price of Ares Capital Corp (ARCC) is between 22.41 to 26.40 according to relative valuation methord. Compared to the current price of 20.57 USD , Ares Capital Corp is Undervalued By 8.24%.
Relative Value
Fair Zone
22.41-26.40
Current Price：20.57
8.24%
Undervalued
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
Ares Capital Corp (ARCC) has a current Price-to-Book (P/B) ratio of 1.05. Compared to its 3-year average P/B ratio of 1.07 , the current P/B ratio is approximately -1.80% higher. Relative to its 5-year average P/B ratio of 1.07, the current P/B ratio is about -2.11% higher. Ares Capital Corp (ARCC) has a Forward Free Cash Flow (FCF) yield of approximately -2.61%. Compared to its 3-year average FCF yield of -2.22%, the current FCF yield is approximately 17.42% lower. Relative to its 5-year average FCF yield of -8.88% , the current FCF yield is about -70.58% lower.
P/B
Median3y
1.07
Median5y
1.07
FCF Yield
Median3y
-2.22
Median5y
-8.88
Competitors Valuation Multiple
AI Analysis for ARCC
The average P/S ratio for ARCC competitors is 2.74, providing a benchmark for relative valuation. Ares Capital Corp Corp (ARCC.O) exhibits a P/S ratio of 5.05, which is 84.41% above the industry average. Given its robust revenue growth of 13.86%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for ARCC
1Y
3Y
5Y
Market capitalization of ARCC increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of ARCC in the past 1 year is driven by Unknown.
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Frequently Asked Questions
Is ARCC currently overvalued or undervalued?
Ares Capital Corp (ARCC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 8.89 is considered Undervalued compared with the five-year average of 9.41. The fair price of Ares Capital Corp (ARCC) is between 22.41 to 26.40 according to relative valuation methord. Compared to the current price of 20.57 USD , Ares Capital Corp is Undervalued By 8.24% .
What is Ares Capital Corp (ARCC) fair value?
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. The fair price of Ares Capital Corp (ARCC) is between 22.41 to 26.40 according to relative valuation methord.
How does ARCC's valuation metrics compare to the industry average?
The average P/S ratio for ARCC's competitors is 2.74, providing a benchmark for relative valuation. Ares Capital Corp Corp (ARCC) exhibits a P/S ratio of 5.05, which is 84.41% above the industry average. Given its robust revenue growth of 13.86%, this premium appears unsustainable.
What is the current P/B ratio for Ares Capital Corp (ARCC) as of Jan 13 2026?
As of Jan 13 2026, Ares Capital Corp (ARCC) has a P/B ratio of 1.05. This indicates that the market values ARCC at 1.05 times its book value.
What is the current FCF Yield for Ares Capital Corp (ARCC) as of Jan 13 2026?
As of Jan 13 2026, Ares Capital Corp (ARCC) has a FCF Yield of -2.61%. This means that for every dollar of Ares Capital Corp’s market capitalization, the company generates -2.61 cents in free cash flow.
What is the current Forward P/E ratio for Ares Capital Corp (ARCC) as of Jan 13 2026?
As of Jan 13 2026, Ares Capital Corp (ARCC) has a Forward P/E ratio of 8.89. This means the market is willing to pay $8.89 for every dollar of Ares Capital Corp’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Ares Capital Corp (ARCC) as of Jan 13 2026?
As of Jan 13 2026, Ares Capital Corp (ARCC) has a Forward P/S ratio of 5.05. This means the market is valuing ARCC at $5.05 for every dollar of expected revenue over the next 12 months.