PEG Ratio
Higher than 38% of Financial Services sector peers
Updated 1078h ago
Sector Performance
38th percentileARES
0.27x
Sector Median
0.64x
Sector Avg
2.15x
Deep Analysis
A PEG ratio of 0.27x means Ares Management's stock price is trading at a low multiple of its expected earnings growth — specifically, the price-to-earnings ratio divided by the earnings growth rate — suggesting the stock may be undervalued relative to its growth prospects.
Compared to sector peers in Financial Services, the sector median PEG ratio is 0.70x, placing ARES at the 30th percentile among its peers, meaning it is cheaper than most but not the cheapest. The trend data is not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and there is no history for the last eight quarters. Because the current PEG is very low and no trend information exists, the investment risk appears limited from a valuation perspective, but the lack of trend data makes it unclear whether this undervaluation is persistent or fleeting. This metric supports the overall NEUTRAL verdict, as a low PEG ratio alone does not justify a bullish stance without corroborating trend information or context on the company's growth stability.
Frequently Asked Questions
What does the PEG Ratio tell investors about ARES?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
How does ARES's PEG Ratio compare to its sector?
ARES's PEG Ratio of 0.27x compares to a Financial Services sector median of 0.64x, placing it in the 38th percentile.
Who are ARES's closest peers by PEG Ratio?
The closest Financial Services peers by PEG Ratio include: SCHW (0.60x), PNC (0.68x), OWL (0.68x), BLK (0.53x), CACC (0.46x).
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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0.27x
Sector Median
0.64x
Sector Avg
2.15x
How ARES's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.