PE Ratio without NRI / 5-Year Book Value Growth Rate*
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use for banks is the 5-Year Book Value growth rate. As of today, Ares Capital's PE Ratio without NRI is 7.79. Ares Capital's 5-Year Book Value growth rate is 2.50%. Therefore, Ares Capital's PEG Ratio for today is 3.11.
* The 5-Year Book Value Growth Rate is the 5-year average Book Value per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Ares Capital's PEG Ratio or its related term are showing as below:
ARCC'
s PEG Ratio Range Over the Past 10 Years
Min: 0.96 Med: 5.02 Max: 1376.83
Current: 3.12
During the past 13 years, Ares Capital's highest PEG Ratio was 1376.83. The lowest was 0.96. And the median was 5.02.
ARCC's PEG Ratio is ranked worse than 64.94% of 425
companies
in the Asset Management industry
Industry Median: 1.88
vs ARCC: 3.12
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Ares Capital PEG Ratio Historical Data
The historical data trend for Ares Capital's PEG Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Ares Capital's PEG Ratio
For the Asset Management subindustry, Ares Capital's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ares Capital's PEG Ratio Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Ares Capital's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Ares Capital's PEG Ratio falls into.
Ares Capital PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year Book Value growth rate.
Ares Capital's PEG Ratio for today is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Note: The 5-Year Book Value Growth Rate is the 5-year average Book Value per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Ares Capital (NAS:ARCC) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Ares Capital PEG Ratio Related Terms
Thank you for viewing the detailed overview of Ares Capital's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Ares Capital Corp is a United States-based closed-ended specialty finance company. Its investment objective is to generate both current income and capital appreciation through debt and equity investments. The company focuses on investing primarily in U.S. middle-market companies with investment opportunities as well as in larger companies. Its portfolio comprises of first lien senior secured loans, second lien senior secured loans, and mezzanine debt (subordinated unsecured loan), which may include equity components that are diversified by industry and sector. The company may invest in preferred and common equity investments to a lesser proportion. Its revenue mainly consists of interest and dividend income received from the investment made.
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