What is Ares Dynamic Credit Allocation Fund FCF Yield %?
Ares Dynamic Credit Allocation FundARDC +0.05%43 FCF Yield % is 4.19 as of Jun. 25, 2026, which is 47% below its 10-year median of 7.97. GuruFocus rates ARDC with a GF Score™ of 43/100 and a GF Value™ of $8.66 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,516 Asset Management companies, Ares Dynamic Credit Allocation Fund ranks better than 57.45% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Ares Dynamic Credit Allocation Fund FCF Yield % Explanation
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Ares Dynamic Credit Allocation Fund FCF Yield % Related Terms
Ares Dynamic Credit Allocation Fund FCF Yield % 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 FCF Yield % Chart
For the Asset Management subindustry, Ares Dynamic Credit Allocation Fund's FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Ares Dynamic Credit Allocation Fund's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Ares Dynamic Credit Allocation Fund's FCF Yield % falls into.
* 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 FCF Yield % of 4.19 as of Jun. 25, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Ares Dynamic Credit Allocation Fund and its competitors. This is 47% below median its historical median of 7.97. According to the industry distribution chart, Ares Dynamic Credit Allocation Fund ranks #645 out of 1516 companies in the Asset Management industry, placing it in the top 42.5%.
Is Ares Dynamic Credit Allocation Fund's FCF Yield % too high?
Ares Dynamic Credit Allocation Fund's current FCF Yield % of 4.19 is 47% below median its 10-year median of 7.97. The Asset Management industry median FCF Yield % is 2.20. Ares Dynamic Credit Allocation Fund's value of 4.19 is 90.9% above this industry median. Based on the distribution chart, Ares Dynamic Credit Allocation Fund ranks #645 out of 1516 companies in the Asset Management industry, which is above the industry midpoint. Overall, Ares Dynamic Credit Allocation Fund has a GF Score™ of 43/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ares Dynamic Credit Allocation Fund's FCF Yield % compare to FUND and NCA?
According to the Asset Management industry distribution chart, Ares Dynamic Credit Allocation Fund ranks #645 out of 1516 companies for FCF Yield %. This puts Ares Dynamic Credit Allocation Fund in the upper half of its industry. The industry median FCF Yield % is 2.20. Ares Dynamic Credit Allocation Fund's value of 4.19 is 90.9% above this benchmark. While the company's 10-year median is 7.97 vs. the industry median of 2.20, 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 FCF Yield % for an Asset Management company?
The median FCF Yield % among Asset Management companies is 2.20, based on 1,516 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ares Dynamic Credit Allocation Fund's current FCF Yield % of 4.19 is 90.9% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Ares Dynamic Credit Allocation Fund and its competitors. For the Asset Management industry, the median FCF Yield % is 2.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ares Dynamic Credit Allocation Fund's current FCF Yield % is 4.19, which is 47% below median its own 10-year median of 7.97. 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 $12.55 — trading 44.9% above its estimated fair value. The current FCF Yield % is 4.19, which is 47% below median its 10-year median of 7.97 and 90.9% above the Asset Management industry median of 2.20. Ares Dynamic Credit Allocation Fund's overall GF Score™ is 43/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Ares Dynamic Credit Allocation Fund (ARDC), the current FCF Yield % is 4.19 as of Jun. 25, 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 $12.55 is trading 44.9% above its estimated GF Value™ of $8.66.
GuruFocus considers Ares Dynamic Credit Allocation Fund to be Significantly Overvalued.
Key valuation signals for ARDC:
FCF Yield %: 4.19 (47% below median its 10-year median of 7.97)
GF Value™: $8.66 vs. price of $12.55 (44.9% above fair value)
Industry Position: 90.9% above the Asset Management median (#645 of 1516)
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.
43GF Score
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