Ares Commercial Real Estate Corporation (ACRE) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-436.3%

-$11.47

vs $3.41 price

Levered DCF

-$7.31

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

-0.18

Distress zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	-291.46×	-9.2×	-14.39×	17.74×	10.17×	18.05×	12.28×	9.66×
P/B	0.51×	0.59×	0.9×	0.71×	0.91×	0.83×	1.06×	0.87×
P/S	3.07×	4.6×	6.05×	4.88×	5.81×	4.99×	5.87×	6.73×
EV / EBITDA	18.23×	38.5×	2,036.31×	299.76×	2,992.03×	0×	0×	16.53×
Gross margin	57.4%	100.0%	100.0%	100.0%	82.5%	100.0%	100.0%	86.6%
Operating margin	72.4%	45.5%	0.0%	0.0%	75.2%	0.0%	0.0%	184.6%
Net margin	-1.1%	-50.3%	-41.8%	27.3%	57.0%	27.8%	47.9%	69.8%
Current ratio	0.08×	4.21×	0×	0×	0×	6.45×	2.39×	0×
Debt / equity	2.06×	2.17×	2.58×	2.32×	2.8×	3.03×	3.13×	0.89×
Interest coverage	0.95×	0.3×	0×	0×	1.59×	0×	0×	1.62×
Dividend yield	14.9%	18.6%	13.5%	13.5%	9.5%	10.9%	8.3%	8.6%
Payout ratio	-4324.9%	-170.3%	-195.4%	241.1%	96.6%	195.8%	101.3%	83.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-0.2%	-6.5%	-6.2%	4.0%	8.9%	4.6%	8.7%	9.1%
Return on invested capital	3.8%	1.8%	0.0%	0.0%	9.6%	0.0%	0.0%	282.3%
Return on assets	-0.1%	-2.0%	-1.7%	1.2%	2.3%	1.1%	2.1%	2.4%
Free cash flow yield	7.5%	11.1%	8.3%	10.7%	7.8%	8.0%	6.8%	10.5%
Earnings yield	-0.3%	-10.9%	-6.9%	5.6%	9.8%	5.6%	8.2%	10.4%
Enterprise value	$1.3B	$1.4B	$2.1B	$2.1B	$2.5B	$1.7B	$1.8B	$740M
Net debt / EBITDA	14.49×	29.86×	1,482.81×	224.82×	2,244.77×	0×	0×	8.22×
Cash conversion cycle (days)	73	7,968	140	443	440	8,311	7,949	320