Ares Management LP (ARES) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Ares Management LP stock (ARES) is currently trading at $106.50. Ares Management LP PE ratio is 62.01. Ares Management LP PS ratio (Price-to-Sales) is 6.26. Analyst consensus price target for ARES is $163.65. WallStSmart rates ARES as Underperform.
- ARES PE ratio analysis and historical PE chart
- ARES PS ratio (Price-to-Sales) history and trend
- ARES intrinsic value — DCF, Graham Number, EPV models
- ARES stock price prediction 2025 2026 2027 2028 2029 2030
- ARES fair value vs current price
- ARES insider transactions and insider buying
- Is ARES undervalued or overvalued?
- Ares Management LP financial analysis — revenue, earnings, cash flow
- ARES Piotroski F-Score and Altman Z-Score
- ARES analyst price target and Smart Rating
Ares Management LP
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ARES Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Ares Management LP (ARES)
ARES trades 1081% above its Graham fair value of $11.63, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Ares Management LP (ARES) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, peg ratio, institutional own.. Concerns around price/book and eps growth. Fundamentals are solid but monitor weak areas for improvement.
Ares Management LP (ARES) Key Strengths (3)
Growing significantly faster than its price suggests
89.29% of shares held by major funds and institutions
Large-cap company with substantial market presence
Supporting Valuation Data
Ares Management LP (ARES) Areas to Watch (7)
Earnings declining -81.40%, profits shrinking
Very expensive at 8.4x book value
Thin operating margins with cost pressures present
Premium valuation at 6.3x annual revenue
Thin profit margins with limited profitability
Moderate profitability with room for improvement
Solid revenue growth at 19.50% per year
Supporting Valuation Data
Ares Management LP (ARES) Detailed Analysis Report
Overall Assessment
This company scores 51/100 in our Smart Analysis, earning a C- grade. Out of 10 metrics analyzed, 3 register as strengths (avg 9.7/10) while 7 fall into concern territory (avg 3.6/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on PEG Ratio, Institutional Own., Market Cap. Valuation metrics including PEG Ratio (0.81) suggest the stock is attractively priced.
The Bear Case
The primary concerns are EPS Growth, Price/Book, Operating Margin. Some valuation metrics including Price/Sales (6.26), Price/Book (8.44) suggest expensive pricing. Growth concerns include Revenue Growth at 19.50%, EPS Growth at -81.40%, which may limit upside. Profitability pressure is visible in Return on Equity at 13.50%, Operating Margin at 13.50%, Profit Margin at 9.42%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 13.50% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 19.50% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (PEG Ratio, Institutional Own.) and negatives (EPS Growth, Price/Book). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
ARES Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
ARES's Price-to-Sales ratio of 6.26x trades 65% above its historical average of 3.79x (82th percentile), historically expensive. The current valuation is 43% below its historical high of 10.97x set in Jan 2025, and 520% above its historical low of 1.01x in Jun 2017. Over the past 12 months, the PS ratio has compressed from ~8.0x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for Ares Management LP (ARES) · FINANCIAL SERVICES › ASSET MANAGEMENT
The Big Picture
Ares Management LP is a strong growth company balancing expansion with improving profitability. Revenue reached 5.6B with 20% growth year-over-year. Profit margins are thin at 9.4%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
Free cash flow is -2.1B, meaning the company is burning cash. This may be acceptable for high-growth companies investing heavily.
Earnings fell 81% YoY while revenue grew 20%. This gap usually reflects one-time items (tax benefits, write-offs) in the prior period, not an operational decline.
What to Watch Next
Margin expansion: can Ares Management LP push profit margins above 15% as the business scales?
Valuation compression risk at a P/E of 62.0x. Any growth miss could trigger a sharp correction.
Dividend sustainability with a current yield of 4.2%. Watch payout ratio and free cash flow coverage.
Volatility is elevated with a beta of 1.56, so expect amplified moves relative to the broader market.
Bottom Line
Ares Management LP offers an attractive blend of growth (20% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Ares Management LP(ARES)
NYSE
FINANCIAL SERVICES
ASSET MANAGEMENT
USA
Ares Management Corporation is an alternative asset manager in the United States, Europe, and Asia.