Ares Management Corporation Class A Common Stock
ARES
$104.83
+2.53%
Ares Management Corporation is a leading global alternative asset manager, operating across credit strategies, private equity, real estate/real assets, and other alternative investments, with a total AUM of $622.5 billion as of year-end 2025. The firm is a dominant player in the private credit market, particularly within its credit strategies segment which comprises over 65% of its total AUM, positioning it as a key institutional capital provider in the non-bank lending space. The current investor narrative is dominated by systemic concerns over liquidity and credit quality within the private credit sector, as highlighted by recent news of a peer's fund redemption caps, which has sparked a broader risk-off sentiment and raised questions about the stability of fee-earning AUM and future fundraising across the industry.…
ARES
Ares Management Corporation Class A Common Stock
$104.83
Related headlines
ARES 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Ares Management Corporation Class A Common Stock's 12-month outlook, with a consensus price target around $136.28 and implied upside of +30.0% versus the current price.
Average Target
$136.28
2 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
2
covering this stock
Price Range
$84 - $136
Analyst target range
Analyst coverage data is limited, with only one analyst providing estimates for revenue and EPS, indicating insufficient breadth to form a reliable consensus view; this limited coverage can be typical for complex alternative asset managers but results in higher volatility and less efficient price discovery. The single analyst's estimated EPS for the forward period is $9.32, with a range from $8.41 to $10.31, while estimated revenue is $11.81 billion; the lack of a published consensus price target and buy/hold/sell distribution means investors must rely on recent institutional rating actions, which show a mix of upgrades and reaffirmations in February 2026, suggesting some professional optimism amidst the sector turmoil.
ARES Technical Analysis
The stock is in a severe and sustained downtrend, with a 1-year price change of -33.70% and a 3-month decline of -38.42%, significantly underperforming the broader market. As of the latest close of $102.43, the price is trading near the bottom of its 52-week range, at approximately 52% of the high ($195.26) and just 7% above the low ($95.80), indicating the stock is deeply oversold and pricing in substantial pessimism, though it remains a potential 'falling knife' scenario. Recent momentum shows no signs of stabilization, with the stock down 9.07% over the past month, which contrasts sharply with the S&P 500's decline of only 3.74%, resulting in a negative 1-month relative strength of -5.33, confirming the stock's acute weakness is company or sector-specific rather than a broad market move. Key technical support is clearly defined at the 52-week low of $95.80, while resistance sits far above near the $195 high; a breakdown below $95.80 would signal a complete loss of the previous trading range and likely trigger further selling, while the stock's beta of 1.536 indicates it is over 50% more volatile than the market, amplifying both downside risk and any potential recovery moves.
Beta
1.54
1.54x market volatility
Max Drawdown
-49.9%
Largest decline past year
52-Week Range
$96-$195
Price range past year
Annual Return
-14.9%
Cumulative gain past year
| Period | ARES Return | S&P 500 |
|---|---|---|
| 1m | -3.7% | -0.3% |
| 3m | -40.4% | -2.0% |
| 6m | -25.6% | +3.5% |
| 1y | -14.9% | +36.2% |
| ytd | -37.0% | -0.9% |
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ARES Fundamental Analysis
Revenue growth has been robust but volatile on a quarterly basis; Q4 2025 revenue was $1.77 billion, representing a strong 40.25% year-over-year increase, though this follows a more modest 12.8% sequential growth from Q3's $1.66 billion, indicating potential lumpiness in performance fee recognition. The company is profitable, with Q4 2025 net income of $54.2 million and a trailing twelve-month free cash flow of $1.54 billion, but profitability metrics are inconsistent, as evidenced by a sharp quarterly drop in net income from $288.9 million in Q3 and a compression in the net income ratio to 3.07% in Q4 from 17.43% in Q3. The balance sheet carries significant financial leverage with a debt-to-equity ratio of 3.49, which is high for an asset manager, though it is supported by a strong current ratio of 2.24 and substantial free cash flow generation, suggesting the company can service its debt internally but remains exposed to refinancing risks in a higher-rate environment.
Quarterly Revenue
$1.8B
2025-12
Revenue YoY Growth
+0.40%
YoY Comparison
Gross Margin
+0.72%
Latest Quarter
Free Cash Flow
$1.5B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is ARES Overvalued?
Given the company's positive net income, the primary valuation metric is the Price-to-Earnings (PE) ratio. The trailing PE is elevated at 66.62x, while the forward PE is a much lower 13.55x; this massive gap implies the market expects a significant earnings recovery in the coming year, pricing in the current depressed profitability as temporary. Compared to sector averages, the stock's Price-to-Sales (PS) ratio of 5.43 and EV/EBITDA of 28.69 are not directly comparable without industry benchmarks, but the high trailing PE suggests a premium that is only justified if forward earnings estimates materialize. Historically, the stock's own trailing PE has fluctuated wildly, from a low near 18x in mid-2021 to a high over 164x in Q4 2025; the current 66.62x is below the recent extreme high but remains elevated relative to its longer-term history, indicating the market is still pricing in a premium for its growth profile despite the recent severe price decline.
PE
66.6x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range -77x~165x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
28.7x
Enterprise Value Multiple