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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
ARI's Price-to-Net-Net-Working-Capital is not ranked *
in the REITs industry.
Industry Median: 16.01 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Apollo Commercial Real Estate Finance (NYSE:ARI) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Apollo Commercial Real Estate Finance Net-Net Working Capital Related Terms
Apollo Commercial Real Estate Finance Net-Net Working Capital 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.
Apollo Commercial Real Estate Finance Net-Net Working Capital Chart
ARI vs PMT, MFA, ABR: Net-Net Working Capital Comparison
For the REIT - Mortgage subindustry, Apollo Commercial Real Estate Finance's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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.
Apollo Commercial Real Estate Finance Price-to-Net-Net-Working-Capital vs REITs Industry
For the REITs industry and Real Estate sector, Apollo Commercial Real Estate Finance's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Apollo Commercial Real Estate Finance's Price-to-Net-Net-Working-Capital 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $-59.28 mean?
Apollo Commercial Real Estate Finance (ARI) has a Net-Net Working Capital of $-59.28 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Apollo Commercial Real Estate Finance According to the industry distribution chart, Apollo Commercial Real Estate Finance ranks #999999 out of 112 companies in the REITs industry.
Is Apollo Commercial Real Estate Finance's Net-Net Working Capital too high?
Apollo Commercial Real Estate Finance's current Net-Net Working Capital is $-59.28. Based on the distribution chart, Apollo Commercial Real Estate Finance ranks #999999 out of 112 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Apollo Commercial Real Estate Finance has a GF Score™ of 57/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Apollo Commercial Real Estate Finance's Net-Net Working Capital compare to PMT and MFA?
According to the REITs industry distribution chart, Apollo Commercial Real Estate Finance ranks #999999 out of 112 companies for Net-Net Working Capital. This places Apollo Commercial Real Estate Finance in the lower half of its industry. The industry median Net-Net Working Capital is 16.01. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a REITs company?
The median Net-Net Working Capital among REITs companies is 16.01, based on 112 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital 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 Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Apollo Commercial Real Estate Finance For the REITs industry, the median Net-Net Working Capital is 16.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Apollo Commercial Real Estate Finance's current Net-Net Working Capital is $-59.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Apollo Commercial Real Estate Finance stock overvalued right now?
Based on GuruFocus' analysis, Apollo Commercial Real Estate Finance (ARI) is currently considered Modestly Undervalued. The stock's GF Value™ is $8.85, compared to a current price of $6.62 — trading 25.2% below its estimated fair value. The current Net-Net Working Capital is $-59.28. Apollo Commercial Real Estate Finance's overall GF Score™ is 57/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Apollo Commercial Real Estate Finance (ARI), the current Net-Net Working Capital is $-59.28 as of Mar. 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 Apollo Commercial Real Estate Finance (ARI) Overvalued in 2026?
Based on GuruFocus' analysis, Apollo Commercial Real Estate Finance stock appears to be undervalued.
The current stock price of $6.62 is trading 25.2% below its estimated GF Value™ of $8.85.
GuruFocus considers Apollo Commercial Real Estate Finance to be Modestly Undervalued.
Key valuation signals for ARI:
Net-Net Working Capital: $-59.28
GF Value™: $8.85 vs. price of $6.62 (25.2% below fair value)
No single metric tells the full story. See the ARI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Apollo Commercial Real Estate Finance Inc is a real estate investment trust that originates, invests in, acquires, and manages commercial first-mortgage loans, subordinate financings, commercial mortgage-backed securities, and other real estate-related debt investments. The subordinate loans and first-mortgage loans account for the vast majority of the portfolio on a cost basis. Property types include residential, retail, healthcare, office, mixed-use, hotel, industrial, multifamily, securities, and other, with residential properties and hotels representing the highest property value. More than a third of the properties are located in New York City, with the other properties located across other regions of the United States, as well as other countries.
57GF Score
Get the complete analysis for ARI
Net-Net Working Capital is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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