Ares Commercial Real Estate Valuation

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

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate ACRE's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate ACRE's fair value for valuation analysis.

Key Valuation Metric

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

Key metric: As ACRE is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ACRE. This is calculated by dividing ACRE's market cap by their current revenue.
What is ACRE's PS Ratio?
PS Ratio	9.8x
Sales	US$39.42m
Market Cap	US$387.89m

ACRE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does ACRE's PS Ratio compare to its peers?

The above table shows the PS ratio for ACRE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	6.3x
NREF NexPoint Real Estate Finance	4.1x	-7.5%	US$383.2m
TRTX TPG RE Finance Trust	5.4x	-6.9%	US$710.5m
KREF KKR Real Estate Finance Trust	12.1x	19.5%	US$805.0m
RWT Redwood Trust	3.5x	-24.2%	US$940.4m
ACRE Ares Commercial Real Estate	9.8x	19.8%	US$387.9m

Price-To-Sales vs Peers: ACRE is expensive based on its Price-To-Sales Ratio (9.8x) compared to the peer average (6.3x).

Price to Sales Ratio vs Industry

How does ACRE's PS Ratio compare vs other companies in the US Mortgage REITs Industry?

1 Company	Price / Sales	Estimated Growth	Market Cap
BMNM Bimini Capital Management	0.7x	n/a	US$9.54m

No more companies available in this PS range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: ACRE is expensive based on its Price-To-Sales Ratio (9.8x) compared to the US Mortgage REITs industry average (5.5x).

Price to Sales Ratio vs Fair Ratio

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

ACRE PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	9.8x
Fair PS Ratio	2.7x

Price-To-Sales vs Fair Ratio: ACRE is expensive based on its Price-To-Sales Ratio (9.8x) compared to the estimated Fair Price-To-Sales Ratio (2.7x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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