Ares Management Corporation (ARES) 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

-41.6%

$78.90

vs $135.09 price

Levered DCF

-$23.52

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.52

Distress zone

Rating

D+

Overall 1 / 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	82.46×	85.52×	48.34×	78.67×	36.12×	52.87×	32.15×	59.27×
P/B	8.22×	9.89×	11.59×	7.56×	7.29×	5.32×	5.01×	2.9×
P/S	5.43×	9.03×	6.04×	3.93×	3.16×	3.6×	2.18×	1.78×
EV / EBITDA	28.68×	26.03×	19.39×	22.59×	21.02×	26.41×	17.81×	20.61×
Gross margin	74.8%	55.4%	59.1%	51.0%	72.4%	56.5%	63.0%	40.5%
Operating margin	27.2%	24.4%	23.0%	10.0%	19.0%	17.8%	17.1%	9.2%
Net margin	8.2%	11.9%	13.1%	5.5%	9.7%	8.6%	8.4%	5.9%
Current ratio	2.24×	0.98×	0.73×	0.64×	0.63×	1×	0.71×	0.53×
Debt / equity	3.49×	3.71×	8.32×	8.39×	6.85×	9.13×	11.15×	12.53×
Interest coverage	2.3×	0.97×	0.97×	0.63×	2.72×	1.01×	1.02×	0.36×
Dividend yield	5.0%	3.7%	4.7%	7.0%	4.5%	7.4%	9.0%	9.2%
Payout ratio	333.1%	282.7%	217.3%	499.2%	147.8%	307.9%	232.0%	274.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.3%	13.1%	25.1%	10.5%	22.4%	12.7%	19.4%	9.7%
Return on invested capital	5.1%	4.0%	3.4%	1.4%	3.9%	2.0%	2.5%	0.8%
Return on assets	1.8%	1.9%	1.9%	0.8%	1.9%	1.0%	1.2%	0.6%
Free cash flow yield	9.1%	7.7%	-1.4%	-6.4%	-19.7%	-6.9%	-54.5%	-84.1%
Earnings yield	1.5%	1.3%	2.2%	1.4%	3.1%	2.4%	3.9%	3.3%
Enterprise value	$65.9B	$62.8B	$47B	$30.2B	$31B	$19.3B	$13.6B	$9.4B
Net debt / EBITDA	5.84×	4.32×	5.88×	9.15×	7.53×	13.44×	10.26×	15.03×
Cash conversion cycle (days)	107	-3	24	32	-20	52	7	24