Ares Capital Valuation
| ARCC Stock | USD 19.48 0.17 0.88% |
At this time, the firm appears to be undervalued. Ares Capital shows a prevailing Real Value of $20.98 per share. The current price of the firm is $19.48. Our model approximates the value of Ares Capital from analyzing the firm fundamentals such as profit margin of 0.43 %, and Return On Equity of 0.0939 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Ares Capital's valuation include:
Price Book 0.9769 | Enterprise Value | Enterprise Value Ebitda 10.1885 | Price Sales 4.5829 | Forward PE 10.1317 |
Undervalued
Today
Please note that Ares Capital's price fluctuation is very steady at this time. Calculation of the real value of Ares Capital is based on 3 months time horizon. Increasing Ares Capital's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Ares Capital is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Ares Stock. However, Ares Capital's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 19.48 | Real 20.98 | Target 22.27 | Hype 19.48 |
The real value of Ares Stock, also known as its intrinsic value, is the underlying worth of Ares Capital Company, which is reflected in its stock price. It is based on Ares Capital's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Ares Capital's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Ares Capital helps investors to forecast how Ares stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Ares Capital more accurately as focusing exclusively on Ares Capital's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Ares Capital's intrinsic value based on its ongoing forecasts of Ares Capital's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Ares Capital's closest peers. If more than one evaluation category is relevant for Ares Capital we suggest using both methods to arrive at a better estimate.
Ares Capital Cash |
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Ares Capital Total Value Analysis
Ares Capital is presently forecasted to have valuation of 29.3 B with market capitalization of 13.99 B, debt of 15.99 B, and cash on hands of 257 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Ares Capital fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
29.3 B | 13.99 B | 15.99 B | 257 M |
Ares Capital Investor Information
About 33.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 0.98. Some equities with similar Price to Book (P/B) outperform the market in the long run. Ares Capital last dividend was issued on the 13th of March 2026. Ares Capital may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.5 | 0.5759 |
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| Operating Income | 640.6 M | 1.1 B |
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Ares Capital Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Ares Capital has an asset utilization ratio of 6.03 percent. This indicates that the Company is making $0.0603 for each dollar of assets. An increasing asset utilization means that Ares Capital is more efficient with each dollar of assets it utilizes for everyday operations.Ares Capital Profitability Analysis
Taking into consideration Ares Capital's profitability measurements, Ares Capital's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Ares Capital's ability to earn profits and add value for shareholders.Net Income | First Reported 2004-12-31 | Previous Quarter 404 M | Current Value 142.4 M | Quarterly Volatility 158.3 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.83 | 0.6294 |
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| Net Profit Margin | 0.5 | 0.6102 |
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| Operating Profit Margin | 0.5 | 0.5759 |
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| Pretax Profit Margin | 0.52 | 0.6601 |
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| Return On Assets | 0.0415 | 0.0368 |
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| Return On Equity | 0.0743 | 0.0802 |
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For Ares Capital profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ares Capital to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ares Capital utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ares Capital's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ares Capital over time as well as its relative position and ranking within its peers.
Ares Capital Earnings per Share Projection vs Actual
The next projected EPS of Ares Capital is estimated to be 0.4828 with future projections ranging from a low of 0.46 to a high of 0.49. Ares Capital's most recent 12-month trailing earnings per share (EPS TTM) is at 1.88. Please be aware that the consensus of earnings estimates for Ares Capital is based on EPS before non-recurring items and includes expenses related to employee stock options.Ares Capital Earnings Estimation Breakdown
The calculation of Ares Capital's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Ares Capital is estimated to be 0.4828 with the future projection ranging from a low of 0.46 to a high of 0.49. Please be aware that this consensus of annual earnings estimates for Ares Capital is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
0.46 Lowest | Expected EPS | 0.49 Highest |
Ares Capital Earnings Projection Consensus
Suppose the current estimates of Ares Capital's value are higher than the current market price of the Ares Capital stock. In this case, investors may conclude that Ares Capital is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Ares Capital's stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 30th of June 2026 | Current EPS (TTM) | |
| 14 | 93.54% | 0.0 | 0.4828 | 1.88 |
Ares Capital Ownership Allocation
Ares Capital holds a total of 718.02 Million outstanding shares. 30% of Ares Capital outstanding shares are owned by other corporate entities. Institutional investors are typically referred to investors that purchase positions in a given stock to benefit from reduced commissions. Consequently, institutional investors are subject to different rules and regulations than regular investors. Please look out for any change in current institutional holding as this could mean something significant has changed at the company or is about to change. On October 7, 2025, Senator John Fetterman of US Senate acquired under $15k worth of Ares Capital's common stock.Ares Capital Profitability Analysis
The company reported the previous year's revenue of 1.88 B. Net Income was 1.42 B with profit before overhead, payroll, taxes, and interest of 3.05 B.Ares Capital Past Distributions to stockholders
| 30th of December 2025 | ||
| 30th of September 2025 | ||
| 30th of June 2025 | ||
| 31st of March 2025 | ||
| 14th of March 2025 | ||
| 30th of December 2024 | ||
| 30th of September 2024 | ||
| 28th of June 2024 | ||
| 30th of May 2024 |
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Ares Capital's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Ares Capital and how it compares across the competition.
About Ares Capital Valuation
The stock valuation mechanism determines Ares Capital's current worth on a weekly basis. Our valuation model uses a comparative analysis of Ares Capital. We calculate exposure to Ares Capital's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Ares Capital's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.2 B | 735.6 M | |
| Pretax Profit Margin | 0.66 | 0.52 | |
| Operating Profit Margin | 0.58 | 0.50 | |
| Net Profit Margin | 0.61 | 0.50 | |
| Gross Profit Margin | 0.63 | 0.83 |
A single share of Ares Capital represents a small ownership stake in the entity. As a stockholder of Ares, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Ares Capital Dividends Analysis For Valuation
The current year's Dividends Paid is expected to grow to about (254.6 M). In addition to that, Dividend Yield is expected to decline to 0.02. At present, Ares Capital's Price Earnings Ratio is projected to drop based on the last few years of reporting.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -268 M | -254.6 M | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.23 | 0.22 | |
| Dividend Paid And Capex Coverage Ratio | (6.41) | (6.73) |
There are various types of dividends Ares Capital can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Ares shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Ares Capital directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Ares pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Ares Capital by the value of the dividends paid out.
Ares Capital Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 699 M | |
| Quarterly Earnings Growth Y O Y | -0.249 | |
| Forward Price Earnings | 10.1317 |
Ares Capital Current Valuation Indicators
Valuation refers to the process of determining the present value of Ares Capital and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Ares we look at many different elements of the entity such as Ares's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Ares Capital, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Ares Capital's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Ares Capital's worth.Complementary Tools for Ares Stock analysis
When running Ares Capital's price analysis, check to measure Ares Capital's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ares Capital is operating at the current time. Most of Ares Capital's value examination focuses on studying past and present price action to predict the probability of Ares Capital's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ares Capital's price. Additionally, you may evaluate how the addition of Ares Capital to your portfolios can decrease your overall portfolio volatility.
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