Latest Ratios: P/E Ratio 10.1x · EV/EBITDA 13.0x · ROE 9.4%. (2004–2025 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 | $13.4B | $14.1B | $13.7B | $11.5B | $9.6B | $9.5B | $7.2B | $8.0B | $6.6B | $6.7B | $5.2B |
| Enterprise Value | $28.5B | $29.2B | $26.8B | $22.9B | $21.6B | $20.2B | $15.5B | $14.9B | $6.3B | $6.4B | $8.8B |
| P/E Ratio → | 10.07 | 10.88 | 8.97 | 7.47 | 15.52 | 6.04 | 14.82 | 10.03 | 7.75 | 10.01 | 10.92 |
| P/S Ratio | 4.28 | 4.50 | 5.77 | 5.32 | 8.00 | 4.61 | 8.35 | 7.14 | 5.93 | 6.86 | 7.03 |
| P/B Ratio | 0.91 | 0.99 | 1.02 | 1.03 | 1.00 | 1.07 | 1.00 | 1.07 | 0.91 | 0.94 | 1.00 |
| P/FCF | 11.78 | 12.38 | 10.65 | 11.52 | 12.83 | 10.11 | 9.76 | 11.69 | 9.97 | — | — |
| P/OCF | 11.78 | 12.38 | 10.65 | 11.52 | 12.83 | 10.11 | 9.76 | 11.69 | 9.97 | — | 7.32 |
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 | — | 9.29 | 11.32 | 10.59 | 18.09 | 9.87 | 18.07 | 13.34 | 5.67 | 6.53 | 11.98 |
| EV / EBITDA | 13.01 | 13.33 | 16.79 | 14.87 | 33.04 | 12.68 | 30.83 | 18.39 | 7.23 | 9.26 | 17.80 |
| EV / EBIT | 13.01 | 13.33 | 16.79 | 14.87 | 33.04 | 12.68 | 30.83 | 18.39 | 7.23 | 9.28 | 17.84 |
| EV / FCF | — | 25.58 | 20.89 | 22.93 | 29.01 | 21.64 | 21.13 | 21.85 | 9.52 | — | — |
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 | 75.7% | 75.7% | 72.2% | 75.5% | 62.0% | 81.9% | 63.1% | 73.9% | 78.6% | 76.9% | 77.3% |
| Operating Margin | 69.7% | 69.7% | 67.4% | 71.2% | 54.8% | 77.9% | 58.6% | 72.6% | 78.4% | 70.4% | 67.2% |
| Net Profit Margin | 41.3% | 41.3% | 64.3% | 70.3% | 50.2% | 76.4% | 56.4% | 71.1% | 76.7% | 68.5% | 64.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.4% | 9.4% | 12.4% | 14.7% | 6.5% | 19.5% | 6.6% | 10.7% | 11.9% | 10.9% | 9.2% |
| ROA | 4.4% | 4.4% | 5.8% | 6.6% | 2.8% | 8.5% | 3.1% | 5.7% | 6.8% | 6.2% | 5.0% |
| ROIC | 5.7% | 5.7% | 4.8% | 5.1% | 2.3% | 6.7% | 2.5% | 4.5% | 5.4% | 4.9% | 4.0% |
| ROCE | 7.5% | 7.5% | 6.4% | 7.2% | 3.2% | 8.9% | 3.3% | 5.9% | 7.2% | 6.5% | 5.4% |
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 | 1.12 | 1.12 | 1.03 | 1.07 | 1.30 | 1.26 | 1.20 | 0.95 | 0.71 | 0.68 | 0.75 |
| Debt / EBITDA | 7.30 | 7.30 | 8.63 | 7.75 | 18.90 | 6.99 | 17.10 | 8.77 | 5.95 | 7.07 | 7.81 |
| Net Debt / Equity | — | 1.05 | 0.98 | 1.02 | 1.26 | 1.22 | 1.16 | 0.93 | -0.04 | -0.04 | 0.71 |
| Net Debt / EBITDA | 6.88 | 6.88 | 8.23 | 7.40 | 18.43 | 6.76 | 16.59 | 8.55 | -0.34 | -0.46 | 7.36 |
| Debt / FCF | — | 13.19 | 10.24 | 11.41 | 16.18 | 11.53 | 11.37 | 10.16 | -0.44 | — | — |
| Interest Coverage | 3.40 | 3.40 | 2.42 | 2.91 | 1.44 | 4.29 | 1.59 | 2.78 | 3.65 | 3.05 | 2.96 |
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 | 1.71 | 1.71 | 2.83 | 0.44 | 0.42 | 0.98 | 1.46 | 2.54 | 1.15 | 1.04 | 1.63 |
| Quick Ratio | 1.71 | 1.71 | 2.83 | 0.44 | 0.42 | 0.98 | 1.46 | 2.54 | 1.15 | 1.04 | 1.63 |
| Cash Ratio | 1.03 | 1.03 | 1.56 | 0.29 | 0.25 | 0.51 | 0.68 | 1.45 | 0.85 | 0.80 | 1.08 |
| Asset Turnover | — | 0.10 | 0.08 | 0.09 | 0.05 | 0.10 | 0.05 | 0.07 | 0.09 | 0.08 | 0.08 |
| 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 | 2.0% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | 74.8% | 67.7% | 152.0% | 44.3% | 140.3% | 87.5% | 76.5% | 96.3% | 100.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 9.9% | 9.2% | 11.1% | 13.4% | 6.4% | 16.6% | 6.7% | 10.0% | 12.9% | 10.0% | 9.2% |
| FCF Yield | 8.5% | 8.1% | 9.4% | 8.7% | 7.8% | 9.9% | 10.2% | 8.6% | 10.0% | — | — |
| Buyback Yield | 0.0% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 2.0% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $699M | $624M | $575M | $518M | $446M | $424M | $427M | $426M | $425M | $314M |
Portfolio Credit Quality Deterioration
According to current market data, ARCC trades at a P/E of 9.78, which appears to reflect a liquidity premium relative to smaller BDC peers, yet this valuation may be increasingly difficult to justify given the recent contraction in net margins and overall earnings volatility observed in 2026Q1.
The current forward P/E of 9.49 suggests that investors are pricing in a stabilization of earnings that may not align with the recent trend of margin compression. When compared to peers like OBDC, the valuation premium warrants caution, as the market may be underestimating the impact of rising non-accruals on the firm's long-term net asset value.
As reported in financial statements, ARCC's ROIC has trended downward to 1.0% in 2026Q1 from a peak of 1.5% in 2024Q1, indicating that the firm is struggling to generate efficient returns on its invested capital base amidst a more challenging and competitive private credit environment.
The decline in ROE to 0.6% in the most recent quarter suggests that the firm's ability to compound shareholder value is being hampered by both lower net margins and the increased cost of leverage. This trend implies that the historical advantage of the Ares platform may be facing diminishing returns as the portfolio matures.
Based on recent SEC filings, ARCC's debt-to-equity ratio has climbed to 1.13 in 2026Q1, marking a steady increase from the 0.99 level observed in 2024Q1, which suggests a more aggressive reliance on borrowed capital to sustain investment volume during a period of significant margin compression.
The interest coverage ratio has deteriorated to 3.33x, down from higher levels in previous cycles, indicating that debt service is becoming less comfortable as portfolio yields face pressure. Investors should monitor whether this leverage trajectory forces the firm to accept lower-quality assets to maintain its dividend distribution.
The market frequently utilizes the P/B ratio to assess ARCC's value, yet as indicated by recent financial disclosures, this metric often obscures the underlying credit risk of Level 3 assets, which may be significantly overvalued relative to their actual cash-generating capacity in a stressed economic environment.
Relying on P/B ignores the potential for future write-downs in the loan portfolio that are not yet reflected in the reported NAV. A more appropriate focus for this business model would be the trend in non-accrual rates and the cash-interest coverage of the underlying borrowers, rather than a simple book value multiple.
Includes 30+ ratios · 22 years · Updated daily
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Quick answers to the most common questions about buying ARCC stock.
Ares Capital Corporation's current P/E ratio is 10.1x. The historical average is 12.4x. This places it at the 62th percentile of its historical range.
Ares Capital Corporation's current EV/EBITDA is 13.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.3x.
Ares Capital Corporation's return on equity (ROE) is 9.4%. The historical average is 10.5%.
Based on historical data, Ares Capital Corporation is trading at a P/E of 10.1x. This is at the 62th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Ares Capital Corporation's current dividend yield is 2.05%.
Ares Capital Corporation has 75.7% gross margin and 69.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Ares Capital Corporation's Debt/EBITDA ratio is 7.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.