Ares Management Corporation

NYSE:ARES Stock Report

Market Cap: US$55.1b

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

  • 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 ARES when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ARES ($176.04) is trading above our estimate of fair value ($48.81)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ARES. This is calculated by dividing ARES's market cap by their current earnings.
What is ARES's PE Ratio?
PE Ratio82.2x
EarningsUS$432.35m
Market CapUS$55.11b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.9x
BK Bank of New York Mellon
16.8x10.7%US$56.4b
AMP Ameriprise Financial
19.1x9.2%US$51.6b
STT State Street
14.9x12.7%US$28.8b
TROW T. Rowe Price Group
12.6x0.3%US$25.8b
ARES Ares Management
82.2x38.4%US$55.1b

Price-To-Earnings vs Peers: ARES is expensive based on its Price-To-Earnings Ratio (82.2x) compared to the peer average (15.9x).

Price to Earnings Ratio vs Industry

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

22 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ADX Adams Diversified Equity Fund
3.6xn/aUS$2.24b
CET Central Securities
4.4xn/aUS$1.29b
GAM General American Investors Company
4.2xn/aUS$1.18b
MUDS Mudrick Capital Acquisition Corporation II
3.4xn/aUS$401.64m
ARES 82.2xIndustry Avg. 23.6xNo. of Companies73PE020406080100+
22 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ARES is expensive based on its Price-To-Earnings Ratio (82.2x) compared to the US Capital Markets industry average (23.6x).

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 Ratio82.2x
Fair PE Ratio32.4x

Price-To-Earnings vs Fair Ratio: ARES is expensive based on its Price-To-Earnings Ratio (82.2x) compared to the estimated Fair Price-To-Earnings Ratio (32.4x).

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$176.04
US$185.31
+5.3%
12.0%US$224.00US$150.00n/a13
Dec ’25US$176.73
US$174.38
-1.3%
8.0%US$195.00US$150.00n/a13
Nov ’25US$161.87
US$167.23
+3.3%
9.0%US$195.00US$140.00n/a13
Oct ’25US$156.31
US$151.29
-3.2%
8.2%US$177.00US$133.00n/a14
Sep ’25US$146.40
US$149.77
+2.3%
8.4%US$177.00US$133.00n/a13
Aug ’25US$149.16
US$151.67
+1.7%
10.5%US$190.00US$132.00n/a12
Jul ’25US$136.20
US$149.17
+9.5%
9.9%US$181.00US$127.00n/a12
Jun ’25US$140.17
US$153.58
+9.6%
10.1%US$181.00US$127.00n/a12
May ’25US$131.70
US$145.80
+10.7%
5.6%US$160.00US$131.00n/a10
Apr ’25US$132.39
US$143.27
+8.2%
7.3%US$157.00US$126.00n/a11
Mar ’25US$133.12
US$143.55
+7.8%
7.4%US$157.00US$126.00n/a11
Feb ’25US$122.62
US$128.55
+4.8%
8.4%US$146.00US$112.00n/a11
Jan ’25US$118.92
US$119.00
+0.07%
5.6%US$128.00US$109.00n/a11
Dec ’24US$111.81
US$116.73
+4.4%
6.5%US$128.00US$101.00US$176.7311
Nov ’24US$101.71
US$115.08
+13.1%
8.2%US$128.00US$96.00US$161.8712
Oct ’24US$102.87
US$110.58
+7.5%
7.3%US$126.00US$96.00US$156.3112
Sep ’24US$103.18
US$110.58
+7.2%
7.3%US$126.00US$96.00US$146.4012
Aug ’24US$102.27
US$106.00
+3.6%
8.1%US$126.00US$96.00US$149.1612
Jul ’24US$96.35
US$98.42
+2.1%
6.5%US$110.00US$89.00US$136.2012
Jun ’24US$88.00
US$98.42
+11.8%
5.6%US$108.00US$89.00US$140.1712
May ’24US$85.57
US$98.08
+14.6%
6.1%US$108.00US$88.00US$131.7012
Apr ’24US$83.44
US$94.25
+13.0%
5.9%US$104.00US$83.00US$132.3912
Mar ’24US$80.73
US$94.50
+17.1%
5.9%US$104.00US$83.00US$133.1212
Feb ’24US$84.66
US$88.42
+4.4%
5.5%US$96.00US$81.00US$122.6212
Jan ’24US$68.44
US$87.92
+28.5%
8.1%US$103.00US$78.00US$118.9212
Dec ’23US$78.00
US$88.92
+14.0%
7.9%US$103.00US$78.00US$111.8112

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 02:06
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Ares Management Corporation is covered by 21 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Benjamin BudishBarclays
James FotheringhamBMO Capital Markets Equity Research
Craig SiegenthalerBofA Global Research