Ares Management (ARES) Rebounds After Weak Q3 Earnings As Fair Value Debate Heats Up

Ares Management (ARES) hit the headlines on October 29, 2026, after third quarter earnings showed lower revenue, sharply reduced net income and weaker earnings per share compared with the same period last year.

Ares Management shares have been volatile this year, with the 1 month share price return of 14.3% and 7 day gain of 4.55% contrasting with a year to date share price decline of 19.45%. The 5 year total shareholder return of 81.83% points to much stronger longer term outcomes.

Spot under-pressure asset managers like Ares Management and compare them with a hand picked 38 high quality undervalued stocks that may offer stronger fundamentals at more appealing prices.

Ares Management just bounced hard after tough quarterly numbers, which puts you at a fork in the road: lean into this rebound now, or wait for a cleaner valuation setup after the dust settles?

Most Popular Narrative: 7.5% Undervalued

Ares Management closed at $133.98 on the last trading day, while the most followed narrative anchors fair value at $144.80 using an 8.71% discount rate. That gap puts the recent rebound in context and frames the current move against a longer term fee and asset growth story.

High levels of undeployed capital, including about US$170b of dry powder at a time when direct lending spreads, OID and covenants have become more lender friendly, position Ares Management to put more capital to work on attractive terms and translate committed but non fee-paying AUM into higher management fees and net earnings.

See why 30 investors see Ares Management as 7% undervalued.

Result: Fair Value of $144.80 (UNDERVALUED)

Still, the bullish Ares Management story can break if wealth channel redemptions flare up again or if data center and real assets projects underdeliver on fees.

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

Another View: Ares Management Looks Expensive On Earnings

The first narrative leans on discounted cash flows and long term fee growth to argue Ares Management is about 7.5% below fair value. A straight P/E check tells a very different story. The stock trades on 108.3x earnings, while the US Capital Markets industry sits at 36.3x and close peers around 19.2x. The fair ratio is 23.6x. That gap points to meaningful valuation risk if sentiment or growth expectations cool from here. Which lens do you trust more when real money is on the line?

For a closer look at what the current earnings multiple might be pricing in, and how it compares with other approaches, See what the numbers say about this price — find out in our valuation breakdown..

Next Steps

If this mix of enthusiasm and concern around Ares Management feels familiar, you are not alone and you do not have to take anyone's word for it when you can test the data yourself, compare the competing narratives and weigh up the 1 key reward and 4 important warning signs.

Looking for more investment ideas beyond Ares Management?

If Ares Management has sharpened your focus on valuation, do not stop here. Fresh ideas often come from looking just outside your usual watchlist.

• Target steadier potential by scanning companies where balance sheets and fundamentals look stronger using the list of solid balance sheet and fundamentals (25 results).
• Hunt for mispriced quality by reviewing a 38 high quality undervalued stocks that might align more closely with your risk and return expectations.
• Build a cash flow focused watchlist by checking a 7 dividend fortresses that could complement higher growth positions in your portfolio.

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