Ares Management Corporation

NYSE:ARES Stock Report

Market Cap: US$56.3b

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.

Discounted Cash Flow
Simply Wall St
US$53.71
Fair Value
224.1% overvalued intrinsic discount
14
Number of Analysts

Below Fair Value: ARES ($174.09) is trading above our estimate of fair value ($53.71)

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 Ratio79.7x
EarningsUS$440.96m
Market CapUS$56.25b

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 Average13.1x
BK Bank of New York Mellon
14.4x7.4%US$62.6b
AMP Ameriprise Financial
15x4.4%US$52.0b
STT State Street
11.5x8.2%US$28.7b
TROW T. Rowe Price Group
11.6x2.5%US$24.2b
ARES Ares Management
79.7x41.4%US$56.3b

Price-To-Earnings vs Peers: ARES is expensive based on its Price-To-Earnings Ratio (79.7x) compared to the peer average (13.1x).

Price to Earnings Ratio vs Industry

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

20 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ADX Adams Diversified Equity Fund
3.7xn/aUS$2.32b
CET Central Securities
4.7xn/aUS$1.38b
ASA ASA Gold and Precious Metals
4.1xn/aUS$491.17m
FRMO FRMO
2xn/aUS$416.90m
ARES 79.7xIndustry Avg. 20.9xNo. of Companies74PE020406080100+
20 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ARES is expensive based on its Price-To-Earnings Ratio (79.7x) compared to the US Capital Markets industry average (20.9x).

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 Ratio79.7x
Fair PE Ratio34.2x

Price-To-Earnings vs Fair Ratio: ARES is expensive based on its Price-To-Earnings Ratio (79.7x) compared to the estimated Fair Price-To-Earnings Ratio (34.2x).

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$174.09
US$198.57
+14.1%
10.3%US$221.00US$164.00n/a14
Feb ’26US$198.22
US$195.00
-1.6%
10.3%US$227.00US$164.00n/a14
Jan ’26US$177.03
US$185.31
+4.7%
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$112.00US$198.2211
Jan ’25US$118.92
US$119.00
+0.07%
5.6%US$128.00US$109.00US$177.0311
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
Analyst Price Target
Consensus Narrative from 14 Analysts
US$198.57
Fair Value
12.3% undervalued intrinsic discount
14
Number of Analysts

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 Analysis2025/02/21 22:44
End of Day Share Price 2025/02/21 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

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.

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 Github.

Analyst Sources

Ares Management Corporation is covered by 19 analysts. 11 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