Latest Ratios: P/E Ratio 62.0x · EV/EBITDA 26.6x · ROE 6.8%. (2011–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $39.9B | $35.1B | $35.1B | $23.3B | $12.0B | $14.6B | $7.0B | $4.3B | $1.7B | $1.6B | $1.6B |
| Enterprise Value | $53.3B | $48.5B | $45.5B | $37.5B | $24.2B | $25.7B | $16.9B | $12.1B | $8.6B | $12.3B | $4.2B |
| P/E Ratio → | 61.98 | 82.46 | 85.52 | 49.14 | 78.67 | 37.80 | 54.08 | 33.67 | 59.27 | 32.26 | 16.00 |
| P/S Ratio | 7.00 | 6.16 | 12.06 | 8.40 | 4.67 | 3.74 | 4.84 | 2.91 | 2.39 | 1.23 | 1.39 |
| P/B Ratio | 3.03 | 4.04 | 5.14 | 5.20 | 3.16 | 3.84 | 2.85 | 2.30 | 1.22 | 1.12 | 1.16 |
| P/FCF | 12.49 | 11.00 | 12.99 | — | — | — | — | — | — | — | — |
| P/OCF | 12.21 | 10.75 | 12.56 | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 8.51 | 15.65 | 13.55 | 9.42 | 6.57 | 11.62 | 8.24 | 12.02 | 9.20 | 3.66 |
| EV / EBITDA | 26.61 | 24.23 | 41.17 | 35.22 | 37.41 | 28.12 | 47.56 | 35.37 | 73.58 | — | 19.01 |
| EV / EBIT | 30.27 | 23.63 | 20.18 | 17.11 | 24.39 | 18.92 | 24.43 | 16.75 | 20.02 | 41.16 | 10.28 |
| EV / FCF | — | 15.19 | 16.84 | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 | — | 4.20 | 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 |
Short-term solvency ratios and asset-utilisation metrics
| 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 | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 6.7% | 5.0% | 3.7% | 4.4% | 7.0% | 4.1% | 6.4% | 7.6% | 9.2% | 16.0% | 12.6% |
| Payout Ratio | 333.1% | 333.1% | 282.7% | 217.3% | 499.2% | 145.2% | 293.7% | 217.4% | 274.6% | 343.5% | 179.5% |
| 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 | 8.0% | 9.1% | 7.7% | — | — | — | — | — | — | — | — |
| Buyback Yield | 2.4% | 2.7% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 9.0% | 7.7% | 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 |
Includes 30+ ratios · 15 years · Updated daily
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Quick answers to the most common questions about buying ARES stock.
Ares Management Corporation's current P/E ratio is 62.0x. The historical average is 52.1x. This places it at the 75th percentile of its historical range.
Ares Management Corporation's current EV/EBITDA is 26.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 37.5x.
Ares Management Corporation's return on equity (ROE) is 6.8%. The historical average is 5.8%.
Based on historical data, Ares Management Corporation is trading at a P/E of 62.0x. This is at the 75th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Ares Management Corporation's current dividend yield is 6.65% with a payout ratio of 333.1%.
Ares Management Corporation has 74.8% gross margin and 27.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Ares Management Corporation's Debt/EBITDA ratio is 7.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Credit risk in direct lending
Metrics are mathematically derived from official filings.
Premium Multiple for Credit Franchise
ARES trades at 3.53x book and 72x trailing earnings, per latest data, implying the market prices its direct lending franchise at a premium to peers like Apollo (1.86x P/B).
The forward P/E of 23.83 suggests the market expects a sharp normalization in earnings from the elevated performance fee realizations that inflated trailing results. The P/B premium relative to Apollo and KKR appears justified by the durability of fee-related earnings and the defensive nature of credit, but investors should monitor whether the multiple can be sustained if credit losses rise.
Fee Income Drives ROE Expansion
ROE improved from 1.6% in Q1 2024 to 1.8% in Q2 2026, per reported figures, as fee income concentration rose to 95.4% of revenue, boosting asset utilization.
The DuPont decomposition shows that ROE is driven primarily by fee-related earnings rather than net interest income, which has been negative for nine consecutive quarters. The efficiency ratio fell from 72.3% to 43.4% over the period, indicating strong operating leverage, but the Q2 2026 provision spike of $1.0B highlights the volatility that performance fees can introduce.
Negative NIM Offset by Fee Efficiency
NIM has been negative for nine quarters, reaching -0.3% in Q2 2026, per financial statements, yet the efficiency ratio improved to 43.4% in Q4 2025, showing cost discipline.
The negative NIM reflects the cost of funding the balance sheet, but it is immaterial to overall profitability given the fee-based model. The efficiency ratio trend suggests that management is scaling the platform without proportional cost growth, though the Q2 2026 efficiency ratio is not reported, and the prior quarter's 72.3% may indicate some quarter-to-quarter volatility.
Leverage Rises as Equity Cushion Thins
Equity/assets improved to 0.29 in Q2 2026 from 0.18 in Q1 2024, but debt-to-equity of 1.71, per latest balance sheet, indicates meaningful financial leverage.
The increase in equity/assets suggests a stronger capital base, but the debt-to-equity ratio of 1.71 is elevated relative to peers like Apollo (0.31) and KKR (0.67). This leverage may support fund seeding and acquisitions, but it could amplify downside if credit markets tighten or asset valuations decline. Investors should monitor whether the firm maintains adequate capital to absorb potential credit losses.
Provision Spike Signals Credit Stress
Loan loss provisions swung from -$129.9M in Q1 2026 to $1.0B in Q2 2026, per cash flow statement, indicating a significant build-up in reserves for potential credit losses.
The provision spike suggests that credit quality in the direct lending portfolio may be deteriorating, possibly due to sustained high interest rates for middle-market borrowers. The negative NIM and the EPS miss in Q2 2026 may be early signals of rising non-accruals. While the reserve build is prudent, it could pressure future performance fees and net margins if losses materialize.
P/E Misleads on Earnings Quality
The trailing P/E of 72.07, per latest data, overstates earnings power because it includes unrealized performance fees that may not convert to cash, obscuring core profitability.
For asset managers, P/E is often distorted by the volatility of performance fees and provisions. A more appropriate metric is Fee-Related Earnings (FRE) yield or P/FRE, which strips out non-cash and unrealized items. The forward P/E of 23.83 partially corrects for this, but investors should also consider P/B and the quality of earnings, as the Q2 2026 provision spike and negative operating cash flow suggest reported net income may not reflect cash generation.