ARESNEUTRAL

P/E Ratio

54.2x

Higher than 93% of Financial Services sector peers

Updated 1078h ago

Sector Performance

93th percentile

ARES

54.2x

Sector Median

15.0x

Sector Avg

22.0x

📊

Deep Analysis

The P/E ratio of 54.2x means that for every $1 of earnings Ares Management generates, investors are currently paying $54.20 for the stock — a price-to-earnings multiple that values the company well above the sector median of 14.4x.

Ares sits in the 92nd percentile among its Financial Services peers, indicating that only 8% of comparable firms carry a higher P/E. No trend data is available: the year-over-year and quarter-over-quarter changes are both listed as N/A, and the metric has no historical values beyond the current reading. This combination of an extremely high valuation with no observable trend leaves the risk-return profile unclear — the premium could reflect strong future growth expectations or an overpriced stock, but without movement data it is impossible to judge momentum. The elevated P/E alone does not directly contradict the overall NEUTRAL verdict, as a high multiple is not inherently bearish if growth justifies it, but it does introduce caution against expecting further upside without evidence of improving earnings.

Frequently Asked Questions

What does the P/E Ratio tell investors about ARES?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

How does ARES's P/E Ratio compare to its sector?

ARES's P/E Ratio of 54.2x compares to a Financial Services sector median of 15.0x, placing it in the 93th percentile.

Who are ARES's closest peers by P/E Ratio?

The closest Financial Services peers by P/E Ratio include: AIG (13.7x), PFG (13.2x), AFL (12.9x), BAC (12.8x), PNC (12.8x).

The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

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ARES

54.2x

Sector Median

15.0x

Sector Avg

22.0x

How ARES's P/E Ratio compares to sector peers.

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