ARESNEUTRAL

EV/EBITDA

28.7x

Higher than 91% of Financial Services sector peers

Updated 1078h ago

Sector Performance

91th percentile

ARES

28.7x

Sector Median

15.1x

Sector Avg

16.7x

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Deep Analysis

Ares Management's current EV/EBITDA of 28.7x means that for every dollar of the company's earnings before interest, taxes, depreciation, and amortization, investors are paying $28.70 of enterprise value — a measure of the firm's total market worth including debt.

This multiple sits well above the sector median of 14.0x, placing ARES in the 89th percentile among its Financial Services peers, indicating a premium valuation relative to competitors. The year-over-year change and quarter-over-quarter change are both N/A, and the trend direction over the last 8 quarters is also N/A, providing no historical context to assess whether the multiple is rising or falling. The combination of an elevated valuation level with no observable trend implies elevated investment risk, as the high multiple prices in optimistic expectations that lack recent momentum data to confirm or refute. This metric generally contradicts a NEUTRAL verdict by flagging a stretched valuation, but without trend information, it does not decisively push the view toward bearish; it instead reinforces caution, aligning with a neutral stance that demands further evidence before taking a stronger position.

Frequently Asked Questions

What does the EV/EBITDA tell investors about ARES?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does ARES's EV/EBITDA compare to its sector?

ARES's EV/EBITDA of 28.7x compares to a Financial Services sector median of 15.1x, placing it in the 91th percentile.

Who are ARES's closest peers by EV/EBITDA?

The closest Financial Services peers by EV/EBITDA include: PFG (11.6x), PNC (11.6x), PRU (11.1x), AFL (11.0x), OWL (11.0x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

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ARES

28.7x

Sector Median

15.1x

Sector Avg

16.7x

How ARES's EV/EBITDA compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.