Ares Capital Corporation

DB:9A2 Stock Report

Market Cap: €13.4b

Ares Capital Valuation

Is 9A2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 9A2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 9A2 (€20.77) is trading below our estimate of fair value (€37.3)

Significantly Below Fair Value: 9A2 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 9A2?

Key metric: As 9A2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 9A2. This is calculated by dividing 9A2's market cap by their current earnings.
What is 9A2's PE Ratio?
PE Ratio9x
EarningsUS$1.58b
Market CapUS$14.21b

Price to Earnings Ratio vs Peers

How does 9A2's PE Ratio compare to its peers?

Insufficient data to calculate this valuation analysis check
The above table shows the PE ratio for 9A2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Averagen/a
9A2 Ares Capital
9x-4.5%€14.2b

Price-To-Earnings vs Peers: Insufficient data to calculate 9A2's Price-To-Earnings Ratio vs. peers for valuation analysis.

Price to Earnings Ratio vs Industry

How does 9A2's PE Ratio compare vs other companies in the DE Capital Markets Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AR4 AURELIUS Equity Opportunities SE KGaA
3.9xn/aUS$416.78m
HXCK Ernst Russ
3.6x-18.2%US$201.25m
VG8 Varengold Bank
1.9xn/aUS$25.70m
XE8 Black Sea Property
0.7xn/aUS$7.79m
No more companies available in this PE range
9A2 9.0xIndustry Avg. 20.3xNo. of Companies6PE01632486480+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 9A2 is good value based on its Price-To-Earnings Ratio (9x) compared to the German Capital Markets industry average (20.3x).

Price to Earnings Ratio vs Fair Ratio

What is 9A2's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

9A2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9x
Fair PE Ratio14.3x

Price-To-Earnings vs Fair Ratio: 9A2 is good value based on its Price-To-Earnings Ratio (9x) compared to the estimated Fair Price-To-Earnings Ratio (14.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 9A2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€20.77
€21.34
+2.7%
4.9%€24.70€19.95n/a14
Nov ’25€19.32
€20.62
+6.7%
5.0%€23.90€19.31n/a14
Oct ’25€18.80
€19.75
+5.0%
3.4%€21.44€18.76n/a14
Sep ’25€19.08
€19.75
+3.5%
3.4%€21.44€18.76n/a14
Aug ’25€19.65
€20.45
+4.1%
3.4%€22.16€19.39n/a14
Jul ’25€19.29
€20.47
+6.1%
3.9%€22.36€19.10n/a15
Jun ’25€19.94
€20.48
+2.7%
3.9%€22.37€19.11n/a15
May ’25€19.38
€20.51
+5.8%
4.2%€22.45€18.71n/a15
Apr ’25€19.20
€19.99
+4.1%
4.6%€22.14€18.45n/a15
Mar ’25€18.69
€20.05
+7.2%
4.5%€22.25€18.54n/a16
Feb ’25€18.58
€19.46
+4.8%
4.7%€22.21€18.51n/a16
Jan ’25€18.00
€19.39
+7.7%
5.1%€22.23€17.60n/a16
Dec ’24€18.05
€19.81
+9.8%
5.1%€22.71€17.98n/a16
Nov ’24€18.14
€19.81
+9.2%
5.1%€22.71€17.98€19.3216
Oct ’24€18.38
€18.83
+2.4%
4.7%€21.63€17.80€18.8016
Sep ’24€18.10
€18.83
+4.0%
4.7%€21.63€17.80€19.0816
Aug ’24€17.78
€18.83
+5.9%
4.7%€21.63€17.80€19.6516
Jul ’24€17.25
€18.67
+8.2%
5.9%€21.92€16.44€19.2916
Jun ’24€17.31
€18.54
+7.1%
6.1%€21.78€16.34€19.9415
May ’24€16.45
€18.54
+12.7%
6.1%€21.78€16.34€19.3815
Apr ’24€16.43
€19.73
+20.1%
5.1%€22.40€18.67€19.2015
Mar ’24€17.99
€19.73
+9.6%
5.1%€22.40€18.67€18.6915
Feb ’24€17.77
€19.23
+8.2%
3.0%€20.25€18.41€18.5814
Jan ’24€17.90
€20.47
+14.3%
3.0%€21.58€19.62€18.0015
Dec ’23€18.34
€20.47
+11.6%
3.0%€21.58€19.62€18.0515
Nov ’23€19.60
€21.07
+7.5%
2.8%€22.07€20.07€18.1414

Analyst Forecast: Target price is less than 20% higher than the current share price.

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