Ares Management Corporation (ARES) Financial Ratios
15 years of historical data (2011–2025) · Financial Services · Asset Management
EV/EBITDA
↓
27.00
↓-19% vs avg
5yr avg: 33.23
30Y Low19.0·High73.6
P/FCF
↑
26.34
↑+47% vs avg
5yr avg: 17.87
30Y Low0.9·High22.7
P/B Ratio
↑
3.09
↓-28% vs avg
5yr avg: 4.28
30Y Low0.2·High5.2
ROE
↓
6.8%
↑-23% vs avg
5yr avg: 8.8%
30Y Low0%·High13%
Debt/EBITDA
↓
7.44
↓-46% vs avg
5yr avg: 13.67
30Y Low7.4·High30.7
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
ARES Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Ares Management Corporation trades at 63.2x earnings, 5% below its 5-year average of 66.7x, sitting at the 75th percentile of its historical range. Compared to the Financial Services sector median P/E of 13.4x, the stock trades at a premium of 372%. On a free-cash-flow basis, the stock trades at 26.3x P/FCF, 47% above the 5-year average of 17.9x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $40.7B | $35.1B | $35.1B | $23.3B | $12.0B | $14.6B | $7.0B | $4.3B | $1.7B | $1.6B | $1.6B |
| Enterprise Value | $54.1B | $48.5B | $45.5B | $37.5B | $24.2B | $25.7B | $16.9B | $12.1B | $8.6B | $12.3B | $4.2B |
| P/E Ratio → | 63.19 | 82.46 | 85.52 | 49.14 | 78.67 | 37.80 | 54.08 | 33.67 | 59.27 | 32.26 | 16.00 |
| P/S Ratio | 6.29 | 5.43 | 9.03 | 6.41 | 3.93 | 3.48 | 3.99 | 2.42 | 1.78 | 1.11 | 1.27 |
| P/B Ratio | 3.09 | 4.04 | 5.14 | 5.20 | 3.16 | 3.84 | 2.85 | 2.30 | 1.22 | 1.12 | 1.16 |
| P/FCF | 26.34 | 22.75 | 12.99 | — | — | — | — | — | — | — | — |
| P/OCF | 25.16 | 21.73 | 12.56 | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
ARES EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Ares Management Corporation's enterprise value stands at 27.0x EBITDA, 19% below its 5-year average of 33.2x. The Financial Services sector median is 11.5x, placing the stock at a 136% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 7.50 | 11.71 | 10.34 | 7.93 | 6.11 | 9.57 | 6.85 | 8.95 | 8.28 | 3.34 |
| EV / EBITDA | 27.00 | 24.23 | 41.17 | 35.22 | 37.41 | 28.12 | 47.56 | 35.37 | 73.58 | — | 19.01 |
| EV / EBIT | 30.71 | 23.63 | 20.18 | 17.11 | 24.39 | 18.92 | 24.43 | 16.75 | 20.02 | 41.16 | 10.28 |
| EV / FCF | — | 31.43 | 16.84 | — | — | — | — | — | — | — | — |
ARES Profitability
Margins and return-on-capital ratios measuring operating efficiency
Ares Management Corporation earns an operating margin of 27.2%, above the Financial Services sector average of 21.4%. Operating margins have expanded from 23.0% to 27.2% over the past 3 years, signaling improving operational efficiency. ROE of 6.8% is modest, trailing the sector median of 9.5%. ROIC of 6.1% represents adequate returns on invested capital versus a sector median of 5.7%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 74.8% | 74.8% | 55.4% | 59.1% | 51.0% | 72.4% | 56.5% | 63.0% | 40.5% | 65.3% | 64.3% |
| Operating Margin | 27.2% | 27.2% | 24.4% | 23.0% | 10.0% | 19.0% | 17.8% | 17.1% | 9.2% | -6.0% | 14.6% |
| Net Profit Margin | 8.2% | 8.2% | 11.9% | 13.1% | 5.5% | 9.7% | 8.6% | 8.4% | 5.9% | 5.1% | 8.9% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 6.8% | 6.8% | 8.2% | 11.5% | 4.4% | 13.0% | 7.0% | 9.2% | 4.0% | 5.4% | 9.4% |
| ROA | 2.0% | 2.0% | 1.9% | 2.0% | 0.8% | 2.2% | 1.1% | 1.3% | 0.6% | 1.1% | 2.2% |
| ROIC | 6.1% | 6.1% | 3.5% | 3.3% | 1.4% | 4.1% | 2.0% | 2.4% | 0.6% | -0.8% | 3.3% |
| ROCE | 7.3% | 7.3% | 4.6% | 4.2% | 1.7% | 5.2% | 2.6% | 3.2% | 1.1% | -1.5% | 4.3% |
ARES Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Ares Management Corporation carries a Debt/EBITDA ratio of 7.4x, which is highly leveraged (81% above the sector average of 4.1x). Net debt stands at $13.4B ($14.9B total debt minus $1.5B cash). Interest coverage of just 2.7x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.71 | 1.71 | 1.93 | 3.52 | 3.51 | 3.28 | 4.41 | 4.61 | 5.28 | 7.74 | 2.46 |
| Debt / EBITDA | 7.44 | 7.44 | 11.90 | 14.78 | 20.59 | 13.65 | 30.73 | 25.04 | 63.18 | — | 15.40 |
| Net Debt / Equity | — | 1.54 | 1.53 | 3.19 | 3.22 | 2.91 | 3.98 | 4.21 | 4.93 | 7.27 | 1.88 |
| Net Debt / EBITDA | 6.70 | 6.70 | 9.43 | 13.38 | 18.87 | 12.13 | 27.74 | 22.86 | 58.94 | — | 11.78 |
| Debt / FCF | — | 8.68 | 3.86 | — | — | — | — | — | — | — | — |
| Interest Coverage | 2.68 | 2.68 | 2.30 | 2.55 | 2.06 | 4.61 | 2.22 | 2.43 | 1.75 | 2.01 | 3.72 |
ARES Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Ares Management Corporation's current ratio of 2.24x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The current ratio has improved from 0.73x to 2.24x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.24 | 2.24 | 0.98 | 0.73 | 0.64 | 0.63 | 1.00 | 0.71 | 0.53 | 0.64 | 1.79 |
| Quick Ratio | 2.24 | 2.24 | 0.98 | 0.73 | 0.64 | 0.63 | 1.00 | 0.71 | 0.53 | 0.64 | 1.79 |
| Cash Ratio | 1.00 | 1.00 | 0.63 | 0.40 | 0.33 | 0.35 | 0.63 | 0.45 | 0.32 | 0.45 | 0.81 |
| Asset Turnover | — | 0.22 | 0.16 | 0.15 | 0.14 | 0.19 | 0.12 | 0.15 | 0.09 | 0.17 | 0.22 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
ARES Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Ares Management Corporation returns 6.5% to shareholders annually primarily through dividends. The earnings yield of 1.6% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 6.5% | 5.0% | 3.7% | 4.4% | 7.0% | 4.1% | 6.4% | 7.6% | 9.2% | 16.0% | 12.6% |
| Payout Ratio | — | — | 282.7% | 217.3% | 499.2% | 145.2% | 293.7% | 217.4% | 274.6% | 343.5% | 179.5% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.6% | 1.2% | 1.2% | 2.0% | 1.3% | 2.6% | 1.8% | 3.0% | 1.7% | 3.1% | 6.3% |
| FCF Yield | 3.8% | 4.4% | 7.7% | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 6.5% | 5.0% | 3.7% | 4.4% | 7.0% | 4.1% | 6.4% | 7.8% | 9.2% | 16.0% | 12.6% |
| Shares Outstanding | — | $217M | $198M | $196M | $176M | $180M | $150M | $120M | $96M | $82M | $83M |
Peer Comparison
Compare ARES with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 ARESYou | $41B | 63.2 | 27.0 | 26.3 | 74.8% | 27.2% | 6.8% | 6.1% | 7.4 |
 APO | $74B | 17.7 | 7.3 | 22.6 | 95.6% | 31.8% | 15.7% | 16.6% | 1.1 |
 KKR | $90B | 43.1 | 20.3 | 9.4 | 41.8% | 2.4% | 3.3% | 0.3% | 7.7 |
 BX | $98B | 32.1 | 15.0 | 56.0 | 86.0% | 51.9% | 14.6% | 16.1% | 1.8 |
 CG | $18B | 18.3 | 16.3 | — | 83.2% | 34.1% | 16.8% | 6.8% | 6.0 |
 BAM | $82B | 38.0 | 29.5 | 130.2 | 71.0% | 69.4% | 80.9% | 71.0% | 0.1 |
 TPG | $17B | 37.2 | 22.1 | 17.2 | 96.9% | 14.7% | 4.8% | 9.3% | 2.1 |
 OWL | $16B | 87.8 | 19.9 | 13.7 | 55.4% | 21.9% | 1.3% | 5.0% | 3.8 |
 HLI | $10B | 25.3 | 17.6 | 12.5 | 38.5% | 21.0% | 19.9% | 15.5% | 0.8 |
 HLNE | $4B | 16.4 | 13.3 | 13.6 | 70.8% | 44.4% | 27.2% | 21.2% | 1.1 |
 STEP | $2B | -21.3 | — | 35.0 | -7.6% | -21.3% | -9.8% | -8.7% | — |
| Financial Services Median | — | 13.4 | 11.5 | 10.7 | 62.9% | 21.4% | 9.5% | 5.7% | 4.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonARES — Frequently Asked Questions
Quick answers to the most common questions about buying ARES stock.
What is Ares Management Corporation's P/E ratio?
Ares Management Corporation's current P/E ratio is 63.2x. The historical average is 52.1x. This places it at the 75th percentile of its historical range.
What is Ares Management Corporation's EV/EBITDA?
Ares Management Corporation's current EV/EBITDA is 27.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 37.5x.
What is Ares Management Corporation's ROE?
Ares Management Corporation's return on equity (ROE) is 6.8%. The historical average is 5.8%.
Is ARES stock overvalued?
Based on historical data, Ares Management Corporation is trading at a P/E of 63.2x. This is at the 75th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Ares Management Corporation's dividend yield?
Ares Management Corporation's current dividend yield is 6.53%.
What are Ares Management Corporation's profit margins?
Ares Management Corporation has 74.8% gross margin and 27.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Ares Management Corporation have?
Ares Management Corporation's Debt/EBITDA ratio is 7.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.