Ares Management Corporation

NYSE:ARES Stock Report

Mkt Cap: US$23.9b

We’ve recently updated our valuation analysis.

Ares Management Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ARES 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/Revenue8.5x
Enterprise Value/EBITDA32.2x
PEG Ratio2.5x

Price to Earnings Ratio vs Peers

How does ARES's PE Ratio compare to its peers?

The above table shows the PE ratio for ARES vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.2x
CG Carlyle Group
7.4x1.4%US$12.8b
TROW T. Rowe Price Group
17.1x5.1%US$25.7b
BEN Franklin Resources
12.4x1.7%US$15.2b
NTRS Northern Trust
15.8x8.4%US$20.2b
ARES Ares Management
93.8x38.2%US$23.9b

Price-To-Earnings vs Peers: ARES is expensive based on its Price-To-Earnings Ratio (93.8x) compared to the peer average (13.2x).


Price to Earnings Ratio vs Industry

How does ARES's PE Ratio compare vs other companies in the US Capital Markets Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.4%
n/an/an/a

Price-To-Earnings vs Industry: ARES is expensive based on its Price-To-Earnings Ratio (93.8x) compared to the US Capital Markets industry average (28.1x)


Price to Earnings Ratio vs Fair Ratio

What is ARES'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.

ARES PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio93.8x
Fair PE Ratio19x

Price-To-Earnings vs Fair Ratio: ARES is expensive based on its Price-To-Earnings Ratio (93.8x) compared to the estimated Fair Price-To-Earnings Ratio (19x).


Share Price vs Fair Value

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

Below Fair Value: ARES ($82.9) is trading above our estimate of fair value ($18.8)

Significantly Below Fair Value: ARES is trading above our estimate of fair value.


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 ARES forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$82.90
US$88.42
+6.7%
5.5%US$96.00US$81.00n/a12
Jan ’24US$68.44
US$87.92
+28.5%
8.1%US$103.00US$78.00n/a12
Dec ’23US$78.00
US$88.92
+14.0%
7.9%US$103.00US$78.00n/a12
Nov ’23US$78.09
US$87.08
+11.5%
8.1%US$103.00US$78.00n/a12
Oct ’23US$61.95
US$85.67
+38.3%
7.7%US$101.00US$76.00n/a12
Sep ’23US$73.12
US$86.00
+17.6%
7.9%US$101.00US$76.00n/a12
Aug ’23US$72.77
US$84.55
+16.2%
8.2%US$101.00US$76.00n/a11
Jul ’23US$58.55
US$88.82
+51.7%
11.9%US$110.00US$68.00n/a11
Jun ’23US$69.84
US$91.36
+30.8%
8.1%US$110.00US$82.00n/a11
May ’23US$66.22
US$91.82
+38.7%
8.2%US$110.00US$82.00n/a11
Apr ’23US$83.04
US$96.18
+15.8%
10.7%US$125.00US$86.00n/a11
Mar ’23US$79.18
US$97.27
+22.9%
10.5%US$125.00US$86.00n/a11
Feb ’23US$77.61
US$94.36
+21.6%
10.7%US$122.00US$85.00n/a11
Jan ’23US$81.27
US$93.80
+15.4%
11.4%US$117.00US$74.00US$68.4410
Dec ’22US$81.05
US$90.38
+11.5%
9.0%US$100.00US$74.00US$78.008
Nov ’22US$83.99
US$90.13
+7.3%
8.7%US$98.00US$74.00US$78.098
Oct ’22US$74.43
US$82.88
+11.3%
5.8%US$90.00US$74.00US$61.958
Sep ’22US$77.66
US$81.29
+4.7%
4.9%US$86.00US$74.00US$73.127
Aug ’22US$71.61
US$78.14
+9.1%
5.4%US$84.00US$71.00US$72.777
Jul ’22US$63.90
US$64.56
+1.0%
4.3%US$70.00US$60.00US$58.559
Jun ’22US$55.29
US$63.78
+15.4%
3.1%US$68.00US$60.00US$69.849
May ’22US$52.52
US$63.50
+20.9%
3.2%US$68.00US$60.00US$66.2210
Apr ’22US$57.68
US$60.60
+5.1%
6.3%US$68.00US$55.00US$83.0410
Mar ’22US$52.49
US$56.90
+8.4%
6.9%US$60.00US$46.00US$79.1810
Feb ’22US$46.42
US$54.30
+17.0%
5.5%US$57.00US$46.00US$77.6110
Jan ’22US$47.05
US$50.50
+7.3%
6.6%US$56.00US$46.00US$81.2710

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


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