ARES Stock Analysis — Ares Management
Sector: Financials
AI Verdict
Ares trades at 18.1x next year's earnings while the market expects a huge rebound, so you’re paying a fair price if the platform’s scale continues to drive the forecasted growth.
Competitive Moat
Ares is an alternative asset manager specializing in private credit, private equity, and real assets, with a defensible moat built on deep institutional relationships and a diversified platform across multiple asset classes. Its scale and long-term capital commitments from pension funds and insurers create sticky, recurring fee streams that are difficult for smaller rivals to replicate.
Summary
Ares is drawing attention for a projected 181.4% jump in earnings next year, with the stock trading at just 18.1x forward earnings.
Where It Stands
Ares is down -32.46% over the past year, with an RSI of 41.2 signaling it is cooling off, and trades at 18.1x next year's earnings versus the financial sector's 14x median.
Key Metrics
- RSI: 41.2 — Neutral
- Trailing P/E: 51.1x
- Forward P/E: 18.1x
- PEG Ratio: 0.28
- Earnings Growth: +1.8%
- Revenue Growth: +0.4%
- Market Cap: $41.0B
- Dividend Yield: 0.04%
- 1-Year Return: -32.46%
- 52-Week High: $195.26
- 52-Week Low: $95.80
Analyst Consensus
17 Buy · 6 Hold · 0 Sell (23 analysts)
Bull Case
Analysts expect forward EPS growth of 181.4%, making the 18.1x forward P/E look cheap for the explosive earnings rebound forecast.
Bear Case
If the forward P/E reverts to the sector median of 14x, the stock could see a further 23% downside even if earnings meet expectations.
Catalyst to Watch
Quarterly earnings results will be key—if Ares delivers on the 181.4% EPS growth forecast, the valuation could quickly look justified.