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What is Ares Dynamic Credit Allocation Fund EV-to-FCF?
Ares Dynamic Credit Allocation FundARDC -0.55%45 EV-to-FCF is 33.36 as of Jul. 16, 2026, which is 133% above its 10-year median of 14.30. GuruFocus rates ARDC with a GF Score™ of 45/100 and a GF Value™ of $8.66 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 935 Asset Management companies, Ares Dynamic Credit Allocation Fund ranks worse than 77.86% on this metric.
ARDC'
s EV-to-FCF Range Over the Past 10 Years
Min: -18.54 Med: 14.3 Max: 34.38
Current: 33.36
During the past 9 years, the highest EV-to-FCF of Ares Dynamic Credit Allocation Fund was 34.38. The lowest was -18.54. And the median was 14.30.
ARDC's EV-to-FCF is ranked worse than 77.86% of 935
companies
in the Asset Management industry
Industry Median: 14.5
vs ARDC: 33.36
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Ares Dynamic Credit Allocation Fund (NYSE:ARDC) EV-to-FCF Explanation
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Ares Dynamic Credit Allocation Fund's PE Ratio (TTM) for today is calculated as:
Ares Dynamic Credit Allocation Fund's share price for today is $12.69.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Ares Dynamic Credit Allocation Fund's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 was $0.947.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Ares Dynamic Credit Allocation Fund EV-to-FCF Related Terms
Ares Dynamic Credit Allocation Fund EV-to-FCF Historical Data
* 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 Dynamic Credit Allocation Fund EV-to-FCF Chart
For the Asset Management subindustry, Ares Dynamic Credit Allocation Fund's EV-to-FCF, along with its competitors' market caps and EV-to-FCF 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 Dynamic Credit Allocation Fund EV-to-FCF vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Ares Dynamic Credit Allocation Fund's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Ares Dynamic Credit Allocation Fund's EV-to-FCF falls into.
Ares Dynamic Credit Allocation Fund's current Enterprise Value is $419.81 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Ares Dynamic Credit Allocation Fund's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2025 was $12.59 Mil.
* 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 Dynamic Credit Allocation Fund (ARDC) has a EV-to-FCF of 33.36 as of Jul. 16, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Ares Dynamic Credit Allocation Fund and its competitors. This is 133% above median its historical median of 14.30. According to the industry distribution chart, Ares Dynamic Credit Allocation Fund ranks #728 out of 935 companies in the Asset Management industry, placing it in the top 77.9%.
Is Ares Dynamic Credit Allocation Fund's EV-to-FCF too high?
Ares Dynamic Credit Allocation Fund's current EV-to-FCF of 33.36 is 133% above median its 10-year median of 14.30. The Asset Management industry median EV-to-FCF is 14.50. Ares Dynamic Credit Allocation Fund's value of 33.36 is 130.1% above this industry median. Based on the distribution chart, Ares Dynamic Credit Allocation Fund ranks #728 out of 935 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, Ares Dynamic Credit Allocation Fund has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ares Dynamic Credit Allocation Fund's EV-to-FCF compare to KWY and HRZN?
According to the Asset Management industry distribution chart, Ares Dynamic Credit Allocation Fund ranks #728 out of 935 companies for EV-to-FCF. This places Ares Dynamic Credit Allocation Fund in the lower half of its industry. The industry median EV-to-FCF is 14.50. Ares Dynamic Credit Allocation Fund's value of 33.36 is 130.1% above this benchmark. While the company's 10-year median is 14.30 vs. the industry median of 14.50, Ares Dynamic Credit Allocation Fund has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-FCF for an Asset Management company?
The median EV-to-FCF among Asset Management companies is 14.50, based on 935 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ares Dynamic Credit Allocation Fund's current EV-to-FCF of 33.36 is 130.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Ares Dynamic Credit Allocation Fund and its competitors. For the Asset Management industry, the median EV-to-FCF is 14.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ares Dynamic Credit Allocation Fund's current EV-to-FCF is 33.36, which is 133% above median its own 10-year median of 14.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ares Dynamic Credit Allocation Fund stock overvalued right now?
Based on GuruFocus' analysis, Ares Dynamic Credit Allocation Fund (ARDC) is currently considered Significantly Overvalued. The stock's GF Value™ is $8.66, compared to a current price of $12.69 — trading 46.5% above its estimated fair value. The current EV-to-FCF is 33.36, which is 133% above median its 10-year median of 14.30 and 130.1% above the Asset Management industry median of 14.50. Ares Dynamic Credit Allocation Fund's overall GF Score™ is 45/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Ares Dynamic Credit Allocation Fund (ARDC), the current EV-to-FCF is 33.36 as of Jul. 16, 2026. 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.
Is Ares Dynamic Credit Allocation Fund (ARDC) Overvalued in 2026?
Based on GuruFocus' analysis, Ares Dynamic Credit Allocation Fund stock appears to be overvalued.
The current stock price of $12.69 is trading 46.5% above its estimated GF Value™ of $8.66.
GuruFocus considers Ares Dynamic Credit Allocation Fund to be Significantly Overvalued.
Key valuation signals for ARDC:
EV-to-FCF: 33.36 (133% above median its 10-year median of 14.30)
GF Value™: $8.66 vs. price of $12.69 (46.5% above fair value)
Industry Position: 130.1% above the Asset Management median (#728 of 935)
No single metric tells the full story. See the ARDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ares Dynamic Credit Allocation Fund Business Description
Ares Dynamic Credit Allocation Fund Inc is a closed-end, diversified, management investment company. The Fund's investment objective is to seek an attractive risk adjusted level of total return, through current income and, secondarily, through capital appreciation. The Fund invests in a broad, dynamically managed portfolio of (i) senior secured loans, (ii) corporate bonds, (iii) other fixed-income instruments, and (iv) securities issued by entities commonly referred to as collateralized loan obligations and other asset-backed securities.
45GF Score
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