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Ares Capital GF Value Rank

: 9 (As of Today)
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Ares Capital has the GF Value Rank of 9.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison

For the Asset Management subindustry, Ares Capital's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

For the Asset Management industry and Financial Services sector, Ares Capital's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Ares Capital's GF Value Rank falls into.



Ares Capital GF Value Rank Related Terms

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


Ares Capital Business Description

Ares Capital logo
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
Henson Mary Beth director 130 EAST 75TH STREET APT 7C NEW YORK NY 10021
Parks Michael K director 123 W MILLS EL PASO TX 79901
Kelly Daniel G Jr director 2000 AVENUE OF THE STARS, 12TH FLOOR LOS ANGELES CA 90067
Lem Scott C officer: CAO, VP & Treasurer 2000 AVENUE OF THE STARS, 12TH FLOOR LOS ANGELES CA 90067
Beckman Eric B officer: Executive Vice President 2000 AVENUE OF THE STARS 12TH FLOOR LOS ANGELES CA 90067
Goldstein Mitchell S officer: Executive Vice President 245 PARK AVENUE 44TH FLOOR NEW YORK NY 10167
Deveer R. Kipp officer: President 245 PARK AVENUE 44TH FLOOR NEW YORK NY 10167
Smith Michael Lewis officer: Executive Vice President 245 PARK AVENUE 44TH FLOOR NEW YORK NY 10167
Bartlett Steve director 7711 CARONDELET AVE SUITE 800 ST LOUIS MO 63105
Mckeever Steven B. director 2000 AVENUE OF THE STARS 12TH FLOOR LOS ANGELES CA 90067
Heitz Kenneth director 123 W MILLS EL PASO TX 79901
Roll Penelope F officer: Chief Financial Officer
Torre Bates Ann director 300 CONTINENTAL DRIVE NEWARK DE 19713
Bloomstein Joshua M officer: Gen. Counsel, VP & Asst. Secr. C/O ARES MANAGEMENT LLC 280 PARK AVENUE, 22ND FL EAST NEW YORK NY 10017
Penske Gregory W director 3534 NORTH PECK ROAD EL MONTE CA 91731

Ares Capital Headlines

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