Ares Management (NYSE:ARES) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Ares Management Forward PE Ratio Related Terms
Ares Management Forward PE Ratio Historical Data
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The historical data trend for Ares Management's Forward PE 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.
Ares Management Forward PE Ratio Chart
Ares Management Annual Data
Trend
2015-12
2017-12
2018-12
2019-12
2020-12
2021-12
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
7.52
11.17
9.80
18.08
21.28
25.77
16.53
25.13
32.03
25.91
Ares Management Quarterly Data
2015-12
2016-03
2017-09
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
7.52
9.62
10.42
11.17
11.26
11.40
11.75
9.80
14.73
16.67
13.93
18.08
15.41
22.12
17.86
21.28
23.87
28.82
26.60
25.77
23.26
18.98
14.97
16.53
20.45
24.81
20.70
25.13
29.41
30.96
26.88
32.03
27.71
33.69
25.56
25.91
16.61
ARES vs TROW, PFG, RJF: Forward PE Ratio Comparison
For the Asset Management subindustry, Ares Management's Forward PE Ratio, along with its competitors' market caps and Forward PE 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 Management Forward PE Ratio vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Ares Management's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Ares Management's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Ares Management (ARES) has a Forward PE Ratio of 20.24 as of Jul. 11, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Ares Management and its competitors. According to the industry distribution chart, Ares Management ranks #275 out of 324 companies in the Asset Management industry, placing it in the top 84.9%.
Is Ares Management's Forward PE Ratio too high?
Ares Management's current Forward PE Ratio is 20.24. The Asset Management industry median Forward PE Ratio is 10.85. Ares Management's value of 20.24 is 86.5% above this industry median. Based on the distribution chart, Ares Management ranks #275 out of 324 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, Ares Management has a GF Score™ of 78/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ares Management's Forward PE Ratio compare to TROW and PFG?
According to the Asset Management industry distribution chart, Ares Management ranks #275 out of 324 companies for Forward PE Ratio. This places Ares Management in the lower half of its industry. The industry median Forward PE Ratio is 10.85. Ares Management's value of 20.24 is 86.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for an Asset Management company?
The median Forward PE Ratio among Asset Management companies is 10.85, based on 324 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ares Management's current Forward PE Ratio of 20.24 is 86.5% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Ares Management and its competitors. For the Asset Management industry, the median Forward PE Ratio is 10.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ares Management's current Forward PE Ratio is 20.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ares Management stock overvalued right now?
Based on GuruFocus' analysis, Ares Management (ARES) is currently considered Possible Value Trap. The stock's GF Value™ is $184.81, compared to a current price of $121.81 — trading 34.1% below its estimated fair value. The current Forward PE Ratio is 20.24 and 86.5% above the Asset Management industry median of 10.85. Ares Management's overall GF Score™ is 78/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Ares Management (ARES), the current Forward PE Ratio is 20.24 as of Jul. 11, 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 Management (ARES) Overvalued in 2026?
Based on GuruFocus' analysis, Ares Management stock appears to be undervalued.
The current stock price of $121.81 is trading 34.1% below its estimated GF Value™ of $184.81.
GuruFocus considers Ares Management to be Possible Value Trap.
Key valuation signals for ARES:
Forward PE Ratio: 20.24
GF Value™: $184.81 vs. price of $121.81 (34.1% below fair value)
Industry Position: 86.5% above the Asset Management median (#275 of 324)
No single metric tells the full story. See the ARES stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ares Management is one of the world's largest alternative-asset managers, with $622.5 billion in total assets under management, or AUM, including $384.9 billion in fee-earning AUM, at the end of 2025. The company has four main business segments: credit strategies ($406.9 billion in total AUM and $249.8 billion in fee-earning AUM), private equity, ($25.3 billion/$14.4 billion), real estate/real assets ($139.1 billion/$84.1 billion), and other alternatives ($51.2 billion/$36.6 billion). The firm primarily serves institutional investors (80% of AUM) and high-net-worth individuals (20%). Ares operates through more than 35 offices in over 15 countries around the globe.
78GF Score
Get the complete analysis for ARES
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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