ARES PE Ratio & Valuation,Is ARES Overvalued

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 28.84 is considered Fairly compared with the five-year average of 25.87. The fair price of Ares Management Corp (ARES) is between 126.71 to 175.66 according to relative valuation methord.

Relative Value

Fair Zone

126.71-175.66

Current Price：172.68

Fair

28.84

21.87

EV/EBITDA

Ares Management Corp. (ARES) has a current EV/EBITDA of 21.87. 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 28.16, and Strongly Overvalued above 28.16. The current Forward EV/EBITDA of 21.87 falls within the Historic Trend Line -Fairly Valued range.

28.30

EV/EBIT

Ares Management Corp. (ARES) has a current EV/EBIT of 28.30. The 5-year average EV/EBIT is 29.80. The thresholds are as follows: Strongly Undervalued below 21.32, Undervalued between 21.32 and 25.56, Fairly Valued between 34.04 and 25.56, Overvalued between 34.04 and 38.28, and Strongly Overvalued above 38.28. The current Forward EV/EBIT of 28.30 falls within the Historic Trend Line -Fairly Valued range.

7.55

Ares Management Corp. (ARES) has a current PS of 7.55. The 5-year average PS is 5.53. The thresholds are as follows: Strongly Undervalued below 2.62, Undervalued between 2.62 and 4.07, Fairly Valued between 6.99 and 4.07, Overvalued between 6.99 and 8.45, and Strongly Overvalued above 8.45. The current Forward PS of 7.55 falls within the Overvalued range.

80.53

P/OCF

Ares Management Corp. (ARES) has a current P/OCF of 80.53. The 5-year average P/OCF is 3.01. The thresholds are as follows: Strongly Undervalued below -25.59, Undervalued between -25.59 and -11.29, Fairly Valued between 17.30 and -11.29, Overvalued between 17.30 and 31.60, and Strongly Overvalued above 31.60. The current Forward P/OCF of 80.53 falls within the Strongly Overvalued range.

99.39

P/FCF

Ares Management Corp. (ARES) has a current P/FCF of 99.39. The 5-year average P/FCF is 9.50. The thresholds are as follows: Strongly Undervalued below -27.01, Undervalued between -27.01 and -8.75, Fairly Valued between 27.75 and -8.75, Overvalued between 27.75 and 46.01, and Strongly Overvalued above 46.01. The current Forward P/FCF of 99.39 falls within the Strongly Overvalued range.

Ares Management Corp (ARES) has a current Price-to-Book (P/B) ratio of 12.79. Compared to its 3-year average P/B ratio of 12.79 , the current P/B ratio is approximately -0.02% higher. Relative to its 5-year average P/B ratio of 10.83, the current P/B ratio is about 18.02% 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 2.47%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -3.81% , the current FCF yield is about -100.00% lower.

12.79

P/B

Median3y

12.79

Median5y

10.83

11.73

FCF Yield

Median3y

2.47

Median5y

-3.81

Competitors Valuation Multiple

The average P/S ratio for ARES's competitors is 2.06, providing a benchmark for relative valuation. Ares Management Corp Corp (ARES) exhibits a P/S ratio of , which is -100% above the industry average. Given its robust revenue growth of 70.35%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of ARES decreased by 1.84% 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.

70.35%

1.19B → 2.03B

Revenue Growth

13.06%

23.59 → 26.67

Margin Expansion

-85.25%

497.28 → 73.35

P/E Change

-1.84%

177.03 → 173.78

Mkt Cap Growth

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Frequently Asked Questions

Is Ares Management Corp (ARES) currently overvalued or undervalued?

What is Ares Management Corp (ARES) fair value?

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. The fair price of Ares Management Corp (ARES) is between 126.71 to 175.66 according to relative valuation methord.

How does ARES's valuation metrics compare to the industry average?

The average P/S ratio for ARES's competitors is 2.06, 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.

What is the current P/B ratio for Ares Management Corp (ARES) as of Dec 16 2025?

As of Dec 16 2025, Ares Management Corp (ARES) has a P/B ratio of 12.79. This indicates that the market values ARES at 12.79 times its book value.

What is the current FCF Yield for Ares Management Corp (ARES) as of Dec 16 2025?

As of Dec 16 2025, Ares Management Corp (ARES) has a FCF Yield of 0.00%. This means that for every dollar of Ares Management Corp’s market capitalization, the company generates 0.00 cents in free cash flow.

What is the current Forward P/E ratio for Ares Management Corp (ARES) as of Dec 16 2025?

As of Dec 16 2025, Ares Management Corp (ARES) has a Forward P/E ratio of 28.84. This means the market is willing to pay $28.84 for every dollar of Ares Management Corp’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Ares Management Corp (ARES) as of Dec 16 2025?

As of Dec 16 2025, Ares Management Corp (ARES) has a Forward P/S ratio of 0.00. This means the market is valuing ARES at $0.00 for every dollar of expected revenue over the next 12 months.

ARES Valuation