Is Ares Management (ARES) Pricing Reflect Recent Share Declines And Rich Valuation Multiples

Simply Wall St

Sat, February 14, 2026 at 2:18 PM GMT+9 5 min read

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•                                       StockStory Top Pick 
  

  ARES

  -0.04%

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Investors may be wondering if Ares Management is priced fairly after its recent swings, and whether the current share price could be offering an opportunity or signaling caution.

Over the last week the stock is up 2.6%, while it shows a 21.2% decline over 30 days, a 19.5% decline year to date, and a 26.1% decline over the past year, set against a 201.9% return over five years and a 75.4% return over three years.

These moves come as Ares Management continues to attract attention as a large alternative asset manager. Investors are closely watching its role in private credit and other non traditional financing activities. Recent market discussion has focused on how these business lines affect fee stability, fundraising conditions and sentiment toward alternative managers in general.

Ares Management currently has a valuation score of 1 out of 6. In this article, we will look at how different valuation methods assess the stock today, then finish by discussing a more complete way to think about valuation beyond any single model.

Ares Management scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Ares Management Excess Returns Analysis

Approach 1: Ares Management Excess Returns Analysis

The Excess Returns model looks at how much profit a company is expected to generate above the return that equity investors require, then capitalizes those extra profits into an estimated value per share.

For Ares Management, the model starts with a book value of $13.68 per share and a stable earnings figure of $6.27 per share, based on weighted future return on equity estimates from 4 analysts. The average return on equity used in the model is 29.90%, while the cost of equity is set at $1.96 per share. That gap creates an estimated excess return of $4.32 per share.

Those excess returns are projected onto a higher stable book value of $20.99 per share, sourced from weighted future book value estimates from 2 analysts. This is then used to calculate an intrinsic value of $93.91 per share using this model.

When compared with the current market price, the Excess Returns valuation implies the shares are about 42.6% overvalued. This suggests the market is paying a premium to the model’s assessment of future excess profits.

Result: OVERVALUED

Our Excess Returns analysis suggests Ares Management may be overvalued by 42.6%. Discover 53 high quality undervalued stocks or create your own screener to find better value opportunities.

Story Continues  

ARES Discounted Cash Flow as at Feb 2026

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Ares Management.

Approach 2: Ares Management Price vs Earnings

For a profitable company like Ares Management, the P/E ratio is a useful quick check because it tells you how many dollars you are paying for each dollar of earnings. What counts as a reasonable P/E depends heavily on how fast earnings are expected to grow and how risky those earnings are, with higher growth and lower perceived risk usually supporting a higher multiple.

Ares Management currently trades on a P/E of 69.23x. That compares with a Capital Markets industry average P/E of 23.12x and a peer group average of 36.26x, so the shares are priced at a clear premium to both broader industry and closer peers.

Simply Wall St’s Fair Ratio for Ares Management is 23.32x. This is a proprietary estimate of what the P/E could look like after accounting for factors such as earnings growth, profit margins, the company’s industry, market cap and specific risk profile. Because it adjusts for these elements rather than relying only on simple peer or industry comparisons, it can give a more tailored sense of what “normal” might be for this stock. Comparing the Fair Ratio of 23.32x with the current P/E of 69.23x suggests the shares are trading above that implied level.

Result: OVERVALUED

NYSE:ARES P/E Ratio as at Feb 2026

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Upgrade Your Decision Making: Choose your Ares Management Narrative

Earlier we mentioned that there is an even better way to think about valuation, and this is where Narratives come in. They let you connect your own story about Ares Management to a simple forecast that produces a Fair Value you can compare with the current share price. All of this happens within the Narratives tool on Simply Wall St’s Community page that millions of investors use. For example, one investor might build a more cautious Ares Management Narrative that leans closer to a US$138.67 bearish Fair Value, while another might build a more optimistic one closer to a US$190.39 bullish Fair Value. As fresh information such as earnings, fundraising updates or news on areas like private credit and data centers flows through, those Narratives update, helping you quickly see whether your Fair Value still supports buying, holding or selling at today’s price.

Do you think there’s more to the story for Ares Management? Head over to our Community to see what others are saying!

NYSE:ARES 1-Year Stock Price Chart

_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include ARES.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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