AAC (Ares Acquisition III) Earnings Power Value (EPV): $0.36 (As of Jun26)

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AAC Ares Acquisition Corp III AAC
12 GF Score
Price $10.06
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What is Ares Acquisition III Earnings Power Value (EPV)?

Ares Acquisition III AAC 12 Earnings Power Value (EPV) is $0.36 as of Jun26. GuruFocus rates AAC with a GF Score™ of 12/100.

As of Jun26, Ares Acquisition III's earnings power value is $0.36. *

* GuruFocus does not store EPV value into our database if Average Maintenance CAPEX is 0.

Margin of Safety is N/A.

The basic concept of EPV is that one should value a stock based on the current free cash flow of a company and not on future projections which may, or may not, come true. It is arguably a better way to analyze stocks than Discounted Cash Flow analysis that relies on highly speculative growth assumptions many years into the future. Assumption: Current profitability is sustainable.

Ares Acquisition III  (NYSE:AAC) Earnings Power Value (EPV) Explanation

Assumption: Current profitability is sustainable.

Earnings power value (EPV) uses a very basic equation which assumes no growth, although it does rely on an assumption about the cost of capital as well as the fact that current earnings are sustainable. It also involves several adjustments to clean up the underlying Earnings figures.

Be Aware

Though using today's earnings in calculating Earnings Power Value, GuruFocus is normalizing these earnings to the business cycle. This eliminates the effects on profitability of valuing the firm at different points in the business cycle. This means that we are considering the average earnings over 5 years.

Ares Acquisition III Earnings Power Value (EPV) Related Terms

Ares Acquisition III Earnings Power Value (EPV) Historical Data

* Premium members only.

The historical data trend for Ares Acquisition III's Earnings Power Value (EPV) 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.

Ares Acquisition III Earnings Power Value (EPV) Chart

Ares Acquisition III Annual Data
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Earnings Power Value (EPV)

Ares Acquisition III Quarterly Data
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AAC vs KRSP, NWAX, GTEN: Earnings Power Value (EPV) Comparison

For the Shell Companies subindustry, Ares Acquisition III's Earnings Power Value (EPV), along with its competitors' market caps and Earnings Power Value (EPV) 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 Acquisition III Earnings Power Value (EPV) vs Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Ares Acquisition III's Earnings Power Value (EPV) distribution charts can be found below:

* The bar in red indicates where Ares Acquisition III's Earnings Power Value (EPV) falls into.


AAC
12GF Score
Ares Acquisition Corp III AAC
Earnings Power Value (EPV) is just one metric. See GF Score™, valuation, warning signs, and more.
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Ares Acquisition III Earnings Power Value (EPV) Calculation

Earnings Power Value also known as just Earnings Power is a valuation technique popularised by Bruce Greenwald, an authority on value investing at Columbia University. It is arguably a better way to analyze stocks than Discounted Cash Flow analysis that relies on highly speculative growth assumptions many years into the future.

The basic concept of EPV is that one should value a stock based on the current free cash flow of a company and not on future projections which may, or may not, come true. This valuation tool excludes the potential growth that a company may have so that needs to be looked at separately. Since future growth is excluded from the analysis, only the maintenance capital expenditures are subtracted from after-tax EBIT (earnings before interest and taxes) and growth capex is ignored.

What does a Earnings Power Value (EPV) of $0.36 mean?
Ares Acquisition III (AAC) has a Earnings Power Value (EPV) of $0.36 as of Jun26. Bruce Greenwald's earnings power value focuses on current earnings without factoring in future growth. View historical data on Ares Acquisition III and its competitors.
Is Ares Acquisition III's Earnings Power Value (EPV) too high?
Ares Acquisition III's current Earnings Power Value (EPV) is $0.36. Overall, Ares Acquisition III has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Ares Acquisition III's Earnings Power Value (EPV) compare to KRSP and NWAX?
Ares Acquisition III's Earnings Power Value (EPV) of $0.36 can be compared against companies in the Diversified Financial Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Power Value (EPV) for a Diversified Financial Services company?
A good Earnings Power Value (EPV) depends on the Diversified Financial Services industry context. However, Earnings Power Value (EPV) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Power Value (EPV) mean?
A high Earnings Power Value (EPV) can signal that a stock is expensive relative to its fundamentals. Bruce Greenwald's earnings power value focuses on current earnings without factoring in future growth. View historical data on Ares Acquisition III and its competitors. Ares Acquisition III's current Earnings Power Value (EPV) is $0.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ares Acquisition III stock overvalued right now?
Ares Acquisition III (AAC) has a current Earnings Power Value (EPV) of $0.36. The current Earnings Power Value (EPV) is $0.36. Ares Acquisition III's overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Power Value (EPV) calculated?
Earnings Power Value (EPV) is calculated from a company's financial statements. For Ares Acquisition III (AAC), the current Earnings Power Value (EPV) is $0.36 as of Jun26. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Ares Acquisition III Business Description

Address c/o Ares Management LLC, 245 Park Avenue, 44th Floor, New York, NY, USA, 10167
Ares Acquisition Corp III is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses.
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Earnings Power Value (EPV) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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