ARES Relative Valuation
ARES'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, ARES is overvalued; if below, it's undervalued.
Historical Valuation
Ares Management Corp (ARES) is now in the Fair zone, suggesting that its current forward PE ratio of 26.96 is considered Fairly compared with the five-year average of 25.84. The fair price of Ares Management Corp (ARES) is between 123.35 to 172.78 according to relative valuation methord.
Relative Value
Fair Zone
123.35-172.78
Current Price：163.07
Fair
26.96
PE
1Y
3Y
5Y
Trailing
Forward
20.85
EV/EBITDA
Ares Management Corp. (ARES) has a current EV/EBITDA of 20.85. The 5-year average EV/EBITDA is 21.26. The thresholds are as follows: Strongly Undervalued below 14.35, Undervalued between 14.35 and 17.80, Fairly Valued between 24.71 and 17.80, Overvalued between 24.71 and 28.17, and Strongly Overvalued above 28.17. The current Forward EV/EBITDA of 20.85 falls within the Historic Trend Line -Fairly Valued range.
26.97
EV/EBIT
Ares Management Corp. (ARES) has a current EV/EBIT of 26.97. The 5-year average EV/EBIT is 29.81. The thresholds are as follows: Strongly Undervalued below 21.33, Undervalued between 21.33 and 25.57, Fairly Valued between 34.04 and 25.57, Overvalued between 34.04 and 38.28, and Strongly Overvalued above 38.28. The current Forward EV/EBIT of 26.97 falls within the Historic Trend Line -Fairly Valued range.
7.36
PS
Ares Management Corp. (ARES) has a current PS of 7.36. The 5-year average PS is 5.52. The thresholds are as follows: Strongly Undervalued below 2.60, Undervalued between 2.60 and 4.06, Fairly Valued between 6.98 and 4.06, Overvalued between 6.98 and 8.44, and Strongly Overvalued above 8.44. The current Forward PS of 7.36 falls within the Overvalued range.
75.09
P/OCF
Ares Management Corp. (ARES) has a current P/OCF of 75.09. The 5-year average P/OCF is 2.56. The thresholds are as follows: Strongly Undervalued below -23.64, Undervalued between -23.64 and -10.54, Fairly Valued between 15.66 and -10.54, Overvalued between 15.66 and 28.76, and Strongly Overvalued above 28.76. The current Forward P/OCF of 75.09 falls within the Strongly Overvalued range.
92.68
P/FCF
Ares Management Corp. (ARES) has a current P/FCF of 92.68. The 5-year average P/FCF is 8.95. The thresholds are as follows: Strongly Undervalued below -25.08, Undervalued between -25.08 and -8.06, Fairly Valued between 25.97 and -8.06, Overvalued between 25.97 and 42.98, and Strongly Overvalued above 42.98. The current Forward P/FCF of 92.68 falls within the Strongly Overvalued range.
Ares Management Corp (ARES) has a current Price-to-Book (P/B) ratio of 11.92. Compared to its 3-year average P/B ratio of 12.74 , the current P/B ratio is approximately -6.38% higher. Relative to its 5-year average P/B ratio of 10.81, the current P/B ratio is about 10.32% higher. Ares Management Corp (ARES) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.22%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -3.91% , the current FCF yield is about -100.00% lower.
11.92
P/B
Median3y
12.74
Median5y
10.81
12.58
FCF Yield
Median3y
2.22
Median5y
-3.91
Competitors Valuation Multiple
The average P/S ratio for ARES's competitors is 3.39, providing a benchmark for relative valuation. Ares Management Corp Corp (ARES) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 70.35%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ARES decreased by 7.89% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.19B to 2.03B.
The secondary factor is the Margin Expansion, contributed 13.06%to the performance.
Overall, the performance of ARES in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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