P/E Ratio
Higher than 93% of Financial Services sector peers
Updated 1079h ago
Sector Performance
93th percentileARES
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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54.2x
Sector Median
15.0x
Sector Avg
22.0x
How ARES's P/E Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.