Latest Ratios: P/E Ratio 61.6x · EV/EBITDA 26.5x · 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 | $39.6B | $35.1B | $35.1B | $23.3B | $12.0B | $14.6B | $7.0B | $4.3B | $1.7B | $1.6B | $1.6B |
| Enterprise Value | $53.1B | $48.5B | $45.5B | $37.5B | $24.2B | $25.7B | $16.9B | $12.1B | $8.6B | $12.3B | $4.2B |
| P/E Ratio → | 61.58 | 82.46 | 85.52 | 49.14 | 78.67 | 37.80 | 54.08 | 33.67 | 59.27 | 32.26 | 16.00 |
| P/S Ratio | 6.13 | 5.43 | 9.03 | 6.41 | 3.93 | 3.48 | 3.99 | 2.42 | 1.78 | 1.11 | 1.27 |
| P/B Ratio | 3.02 | 4.04 | 5.14 | 5.20 | 3.16 | 3.84 | 2.85 | 2.30 | 1.22 | 1.12 | 1.16 |
| P/FCF | 12.41 | 11.00 | 12.99 | — | — | — | — | — | — | — | — |
| P/OCF | 12.13 | 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 | — | 7.50 | 11.71 | 10.34 | 7.93 | 6.11 | 9.57 | 6.85 | 8.95 | 8.28 | 3.34 |
| EV / EBITDA | 26.48 | 24.23 | 41.17 | 35.22 | 37.41 | 28.12 | 47.56 | 35.37 | 73.58 | — | 19.01 |
| EV / EBIT | 30.12 | 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 | 8.1% | 9.1% | 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 | 6.7% | 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 |
Performance fee volatility risk
Based on current market data, ARES trades at a 55.68x TTM P/E ratio, which, when compared to the broader alternative asset management peer group, suggests that investors are pricing in significant future growth in fee-paying assets rather than relying on current earnings multiples.
The forward P/E of 18.17 indicates that the market anticipates a substantial expansion in earnings as current dry powder is deployed and performance fees are realized. This valuation premium relative to peers like Carlyle suggests that the market assigns a higher quality score to Ares' credit-heavy, recurring fee model compared to more volatile private equity-focused competitors.
As reported in financial statements, the firm's ROIC has remained in a narrow range between 0.3% and 1.7% over the last ten quarters, indicating that the massive expansion of the asset base has yet to translate into a compounding return on invested capital.
The low ROIC figures suggest that the firm's rapid inorganic growth, particularly through acquisitions like Landmark Partners, has significantly increased the capital base without a commensurate immediate lift in operational returns. Investors should monitor whether the firm can improve these returns as the integration of these assets matures and the credit platform achieves greater economies of scale.
According to recent SEC filings, the debt-to-equity ratio has improved from a peak of 3.52 in 2023Q4 to 1.69 in 2026Q1, signaling a more conservative approach to balance sheet management as the firm scales its global operations.
While the reduction in leverage is a positive indicator of financial health, the interest coverage ratio, which has fluctuated between 1.75x and 4.21x, warrants close attention in a higher-for-longer interest rate environment. The current leverage profile appears adequate for the firm's business model, but any further debt-funded acquisitions could pressure the firm's ability to service obligations if performance fee income experiences a cyclical downturn.
Based on the firm's unique revenue structure, the P/E ratio is frequently misapplied by analysts, as it fails to distinguish between stable, recurring management fees and the highly volatile, non-cash performance-related earnings that dominate the bottom line.
Investors should instead focus on Fee-Related Earnings (FRE) as the primary metric for valuation, as it provides a clearer picture of the firm's core profitability and cash-generating capacity. Relying on standard P/E multiples obscures the underlying quality of the management business and may lead to incorrect conclusions regarding the firm's true earnings power during periods of high performance fee realizations.
Includes 30+ ratios · 15 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying ARES stock.
Ares Management Corporation's current P/E ratio is 61.6x. 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 26.5x. 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 61.6x. 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 6.70% 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.