Ares Capital Corp (ARCC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 8.89 is considered Undervalued compared with the five-year average of 9.42. The fair price of Ares Capital Corp (ARCC) is between 20.73 to 24.39 according to relative valuation method. Compared to the current price of 18.71 USD , Ares Capital Corp By Undervalued By 9.73%.

Relative Value

Fair Zone

20.73-24.39

Current Price：18.71

9.73%

Undervalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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Ares Capital Corp (ARCC) has a current Price-to-Book (P/B) ratio of 1.05. Compared to its 3-year average P/B ratio of 1.07, the current P/B ratio is approximately -1.83% higher. Relative to its 5-year average P/B ratio of 1.07, the current P/B ratio is about -2.17% higher. Ares Capital Corp (ARCC) has a Forward Free Cash Flow (FCF) yield of approximately -2.61%. Compared to its 3-year average FCF yield of -1.71%, the current FCF yield is approximately 53.00% lower. Relative to its 5-year average FCF yield of -8.91%, the current FCF yield is about -70.70% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for ARCC competitors is 3.11, providing a benchmark for relative valuation. Ares Capital Corp Corp (ARCC.O) exhibits a P/S ratio of 5.05, which is 62.57% above the industry average. Given its robust revenue growth of -5.55%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of ARCC increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of ARCC in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is ARCC currently overvalued or undervalued?

What is Ares Capital Corp (ARCC) fair value?

ARCC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of Ares Capital Corp (ARCC) is between 20.73 to 24.39 according to relative valuation method.

How does ARCC's valuation metrics compare to the industry average?

The average P/S ratio for ARCC's competitors is 3.11, providing a benchmark for relative valuation. Ares Capital Corp Corp (ARCC) exhibits a P/S ratio of 5.05, which is 62.57% above the industry average. Given its robust revenue growth of -5.55%, this premium appears unsustainable.

What is the current P/B ratio for Ares Capital Corp (ARCC) as of Mar 02 2026?

As of Mar 02 2026, Ares Capital Corp (ARCC) has a P/B ratio of 1.05. This indicates that the market values ARCC at 1.05 times its book value.

What is the current FCF Yield for Ares Capital Corp (ARCC) as of Mar 02 2026?

As of Mar 02 2026, Ares Capital Corp (ARCC) has a FCF Yield of -2.61%. This means that for every dollar of Ares Capital Corp's market capitalization, the company generates -2.61 cents in free cash flow.

What is the current Forward P/E ratio for Ares Capital Corp (ARCC) as of Mar 02 2026?

As of Mar 02 2026, Ares Capital Corp (ARCC) has a Forward P/E ratio of 8.89. This means the market is willing to pay $8.89 for every dollar of Ares Capital Corp's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Ares Capital Corp (ARCC) as of Mar 02 2026?

As of Mar 02 2026, Ares Capital Corp (ARCC) has a Forward P/S ratio of 5.05. This means the market is valuing ARCC at $5.05 for every dollar of expected revenue over the next 12 months.

ARCC Valuation