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Ares Management (ARES) Just Gave Investors Something To Think About

Simply Wall St · 2d ago

Ares Management (ARES) just put a fresh spotlight on its real estate arm after partnering with the Public Sector Pension Investment Board on a joint venture to invest up to US$2.4b in U.S. logistics properties.

Ares Management shares trade at US$118.97 and the stock has fallen 16.5% over the past month, even though the 90 day share price return is up 4.7% and the 5 year total shareholder return of 87.1% points to stronger longer term momentum.

Scan how Ares Management compares with other alternative asset managers by reviewing our hand picked list of 17 high quality undiscovered gems in similar capital intensive, cash flow driven businesses.

Ares Management now trades at a double digit discount to analyst targets after a sharp pullback, even as it commits US$2.4b to new logistics deals. Is that caution sensible or overly harsh on the valuation?

Most Popular Narrative: 18% Undervalued

On the most followed narrative, Ares Management screens as undervalued against a fair value of $145.24, compared with the recent $118.97 close. This puts extra weight on how its credit and real asset franchises scale from here.

High levels of un-deployed capital (dry powder) and a record investment pipeline position Ares to quickly convert AUM not yet paying fees into fee-generating assets, accelerating management fee and net earnings growth over the next 12-18 months.

See why 27 investors see Ares Management as 18% undervalued.

Result: Fair Value of $145.24 (UNDERVALUED)

Still, the Ares Management narrative could be knocked off course if fee pressure intensifies in crowded private credit, or if newer platforms struggle to scale profitably.

Find out about the key risks to this Ares Management narrative.

Another View: Ares Management On Earnings Multiples

The first narrative leans on analyst fair value around $145 per Ares Management share. A different lens looks at what investors are currently paying for each dollar of earnings.

On this measure, Ares trades at a P/E of 55.5x, which is far above both the US Capital Markets industry average of 39.2x and a peer average of 12.8x. It also sits well above a fair ratio of 24.7x that the market could move toward over time, which points to meaningful valuation risk if sentiment cools or earnings delivery disappoints.

Put simply, the stock is being treated as a premium alternative asset manager, while the fair ratio implies something closer to a mid tier multiple. The gap is wide enough that investors need to ask whether the fee growth and esoteric credit opportunity are strong enough to keep that premium intact.

See what the numbers say about this price — find out in our valuation breakdown.

NYSE:ARES P/E Ratio as at Sep 2026
NYSE:ARES P/E Ratio as at Sep 2026

Next Steps

If this mix of optimism and concern around Ares Management leaves you undecided, act quickly, review the data, and pressure test both sides of the argument by checking the 3 key rewards and 3 important warning signs.

Looking for more Ares Management style investment ideas?

If the Ares Management debate has sharpened your thinking, do not stop here. Broaden your opportunity set with other carefully filtered stocks using the Simply Wall Street Screener.

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.