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Recent performance snapshot
Ares Management (ARES) has been volatile in recent periods, with the stock down 3.7% over the past day and 2.2% over the past week, but slightly higher over the past month.
Over the past 3 months the stock is up 14.2%, yet year to date it is down 24.5% and the past year shows a total return decline of 25.3%, highlighting mixed outcomes across different timeframes.
See our latest analysis for Ares Management.
For context, Ares Management’s recent weakness in the share price, with the stock currently at $125.65, sits against a longer backdrop where short term share price momentum has faded while multi year total shareholder returns remain strongly positive.
If you are weighing Ares Management against other ideas in the market, it can help to broaden your search with a curated set of resilient, growing businesses through the 21 top founder-led companies
So with Ares Management’s share price under pressure this year, while the stock is still sitting above recent lows and trading below some analyst targets, are you looking at a genuine value opportunity, or is the market already pricing in future growth?
Most Popular Narrative: 13.6% Undervalued
The most followed narrative currently points to a fair value of $145.35 for Ares Management, above the last close at $125.65, framing the stock as modestly undervalued on those assumptions.
The analysts have a consensus price target of $145.35 for Ares Management based on their expectations of its future earnings growth, profit margins and other risk factors.
However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $190.0, and the most bearish reporting a price target of just $125.0.
Want to see what is sitting behind that fair value gap? The narrative leans on compounding earnings growth, firmer profit margins and a richer future earnings multiple. The exact mix of those inputs may surprise you.
Result: Fair Value of $145.35 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, that story can change quickly if fee pressure intensifies across private credit, or if retail focused products see sustained outflows that weigh on AUM and management fees.
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Another View: What Earnings Multiples Are Signalling
It is worth setting the analyst fair value narrative against where the stock trades on earnings today. Ares Management changes hands at a P/E of 50.4x, compared with 18.4x for peers, 39.1x for the wider US Capital Markets group, and a fair ratio of 21.9x based on our model.
That is a wide gap, and it points to meaningful valuation risk if expectations cool, even if the long term earnings story plays out. How comfortable are you with paying such a premium multiple for this growth profile?
See what the numbers say about this price — find out in our valuation breakdown.
NYSE:ARES P/E Ratio as at Jun 2026 Next Steps
With sentiment clearly mixed across valuation, growth and recent returns, you may want to move quickly and review the evidence yourself before the story shifts again. To weigh up both sides, take a close look at the 2 key rewards and 3 important warning signs
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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.
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