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Event overview and recent share performance
Ares Management (ARES) shares recently closed at $124.41, capping a month with a gain of about 2.8%. The stock is down roughly 25.2% year to date and 19.8% over the past year.
See our latest analysis for Ares Management.
Short term, Ares Management has seen only modest share price momentum over the past month, while the weaker year to date share price return contrasts with much stronger three and five year total shareholder returns, suggesting longer term holders have fared better.
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With Ares trading at $124.41 and sitting at a discount to analyst targets while showing recent revenue and net income growth, you have to ask: is this a genuine opportunity, or is future growth already priced in?
Most Popular Narrative: 27.1% Undervalued
The most followed narrative currently pegs Ares Management’s fair value at $170.59, well above the last close at $124.41. This indicates a sizeable valuation gap based on that framework.
Expansion into multiple asset classes (infrastructure, real estate, sports/media, secondaries), with recent successes like the GCP acquisition and the scaling of data center asset management, are expected to deliver higher management and development fees, supporting long-term revenue and FRE growth.
Want to see what sits behind that higher fair value? The narrative leans on faster earnings growth, wider margins and a richer future earnings multiple. Curious which numbers do the heavy lifting.
Result: Fair Value of $170.59 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, that upside story faces real tests if fee pressure from intensifying private credit competition persists, or if retail focused vehicles see sustained outflows and weaker AUM stability.
Find out about the key risks to this Ares Management narrative.
Another angle on valuation
The first narrative says Ares Management looks about 27% undervalued at $170.59 fair value, yet the P/E paints a tougher picture. At around 50x earnings versus a peer average of 18.2x and a fair ratio of 21.7x, the stock screens as expensive. Is the market overpaying for growth or discounting risk too lightly?
To unpack what that rich P/E might mean for upside and downside, it helps to see how the numbers stack up against our valuation breakdown, not just the headline multiple: See what the numbers say about this price — find out in our valuation breakdown.
NYSE:ARES P/E Ratio as at May 2026 Next Steps
With both risks and rewards on the table, consider whether the balance of optimism and concern matches your own view. Take a closer look at the underlying data and form your own stance by checking out the 2 key rewards and 3 important warning signs
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If Ares Management has sharpened your focus, do not stop here. Put fresh ideas on your radar now so potential opportunities do not slip past you.
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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