GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Ares Capital Corp (NAS:ARCC) » Definitions » EV-to-FCF

Ares Capital (Ares Capital) EV-to-FCF : 46.81 (As of Apr. 26, 2024)


View and export this data going back to 2004. Start your Free Trial

What is Ares Capital EV-to-FCF?

EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Ares Capital's Enterprise Value is $23,918 Mil. Ares Capital's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2023 was $511 Mil. Therefore, Ares Capital's EV-to-FCF for today is 46.81.

The historical rank and industry rank for Ares Capital's EV-to-FCF or its related term are showing as below:

ARCC' s EV-to-FCF Range Over the Past 10 Years
Min: -153.65   Med: -7.88   Max: 89.46
Current: 47

During the past 13 years, the highest EV-to-FCF of Ares Capital was 89.46. The lowest was -153.65. And the median was -7.88.

ARCC's EV-to-FCF is ranked worse than
83.46% of 1070 companies
in the Asset Management industry
Industry Median: 13.83 vs ARCC: 47.00

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 to determine the fair market value of a company.

As of today (2024-04-26), Ares Capital's stock price is $20.63. Ares Capital's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $2.670. Therefore, Ares Capital's PE Ratio for today is 7.73.


Ares Capital EV-to-FCF Historical Data

The historical data trend for Ares Capital's EV-to-FCF 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.

* Premium members only.

Ares Capital EV-to-FCF Chart

Ares Capital Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
EV-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only -12.12 -26.66 -8.41 -15.90 45.13

Ares Capital Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
EV-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -15.90 -21.55 44.41 43.39 45.13

Competitive Comparison of Ares Capital's EV-to-FCF

For the Asset Management subindustry, Ares Capital'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 Capital's EV-to-FCF Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Ares Capital's EV-to-FCF distribution charts can be found below:

* The bar in red indicates where Ares Capital's EV-to-FCF falls into.



Ares Capital EV-to-FCF Calculation

Ares Capital's EV-to-FCF for today is calculated as:

EV-to-FCF=Enterprise Value (Today)/Free Cash Flow (TTM)
=23917.813/511
=46.81

Ares Capital's current Enterprise Value is $23,918 Mil.
Ares Capital's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $511 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 Capital  (NAS:ARCC) 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 to determine the fair market value of a company.

Ares Capital's PE Ratio for today is calculated as:

PE Ratio=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=20.63/2.670
=7.73

Ares Capital's share price for today is $20.63.
Ares Capital's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.670.

* 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 Capital EV-to-FCF Related Terms

Thank you for viewing the detailed overview of Ares Capital's EV-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Ares Capital (Ares Capital) Business Description

Traded in Other Exchanges
Address
245 Park Avenue, 44th Floor, New York, NY, USA, 10167
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.
Executives
Michael Kort Schnabel officer: Co-President 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Penelope F Roll officer: Chief Financial Officer
Jana Markowicz officer: Chief Operating Officer 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Mary Beth Henson director 130 EAST 75TH STREET, APT 7C, NEW YORK NY 10021
Steven B. Mckeever director 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Michael J Arougheti officer: President 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Michael Lewis Smith officer: Executive Vice President 245 PARK AVENUE, 44TH FLOOR, NEW YORK NY 10167
Joshua M Bloomstein officer: Gen. Counsel, VP & Asst. Secr. C/O ARES MANAGEMENT LLC, 280 PARK AVENUE, 22ND FL EAST, NEW YORK NY 10017
R. Kipp Deveer officer: President 245 PARK AVENUE, 44TH FLOOR, NEW YORK NY 10167
Eric B Siegel director 123 W MILLS, EL PASO TX 79901
Michael K Parks director 123 W MILLS, EL PASO TX 79901
Robert L Rosen director 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Steve Bartlett director 7711 CARONDELET AVE, SUITE 800, ST LOUIS MO 63105
Kelly Daniel G Jr director 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Bates Ann Torre director 300 CONTINENTAL DRIVE, NEWARK DE 19713