Ares ManagementARES +0.12%78 ROC (Joel Greenblatt) % is 306.92% as of Mar. 2026, which is 45% below its 10-year median of 560.18. GuruFocus rates ARES with a GF Score™ of 78/100 and a GF Value™ of $184.87 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 628 Asset Management companies, Ares Management ranks better than 71.02% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Ares Management's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 306.92%.
The historical rank and industry rank for Ares Management's ROC (Joel Greenblatt) % or its related term are showing as below:
ARES'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 286.49 Med: 560.18 Max: 1032.5
Current: 380.88
During the past 13 years, Ares Management's highest ROC (Joel Greenblatt) % was 1032.50%. The lowest was 286.49%. And the median was 560.18%.
ARES's ROC (Joel Greenblatt) % is ranked better than 71.02% of 628
companies
in the Asset Management industry
Industry Median: 64.34
vs ARES: 380.88
Ares Management's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -3.20% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Ares Management ROC (Joel Greenblatt) % Related Terms
Ares Management ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Ares Management's ROC (Joel Greenblatt) % 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 vs TROW, PFG, RJF: ROC (Joel Greenblatt) % Comparison
For the Asset Management subindustry, Ares Management's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Ares Management's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Ares Management's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 306.92% mean?
Ares Management (ARES) has a ROC (Joel Greenblatt) % of 306.92% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Ares Management and its competitors. This is 45% below median its historical median of 560.18. Over the past decade, Ares Management's ROC (Joel Greenblatt) % has ranged from 286.49 to 1,032.50. According to the industry distribution chart, Ares Management ranks #182 out of 628 companies in the Asset Management industry, placing it in the top 29%.
Is Ares Management's ROC (Joel Greenblatt) % too high?
Ares Management's current ROC (Joel Greenblatt) % of 306.92% is 45% below median its 10-year median of 560.18. Over the past 10 years, this metric has ranged from a low of 286.49 to a high of 1,032.50. The Asset Management industry median ROC (Joel Greenblatt) % is 64.34. Ares Management's value of 306.92% is 377% above this industry median. Based on the distribution chart, Ares Management ranks #182 out of 628 companies in the Asset Management industry, which is above the industry midpoint. 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 ROC (Joel Greenblatt) % compare to TROW and PFG?
According to the Asset Management industry distribution chart, Ares Management ranks #182 out of 628 companies for ROC (Joel Greenblatt) %. This puts Ares Management in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 64.34. Ares Management's value of 306.92% is 377% above this benchmark. Historically, Ares Management's own ROC (Joel Greenblatt) % has ranged from 286.49 to 1,032.50 over the past decade. While the company's 10-year median is 560.18 vs. the industry median of 64.34, Ares Management 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 ROC (Joel Greenblatt) % for an Asset Management company?
The median ROC (Joel Greenblatt) % among Asset Management companies is 64.34, based on 628 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ares Management's current ROC (Joel Greenblatt) % of 306.92% is 377% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Ares Management and its competitors. For the Asset Management industry, the median ROC (Joel Greenblatt) % is 64.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ares Management's current ROC (Joel Greenblatt) % is 306.92%, which is 45% below median its own 10-year median of 560.18. 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 $184.87, compared to a current price of $121.81 — trading 34.1% below its estimated fair value. The current ROC (Joel Greenblatt) % is 306.92%, which is 45% below median its 10-year median of 560.18 and 377% above the Asset Management industry median of 64.34. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Ares Management (ARES), the current ROC (Joel Greenblatt) % is 306.92% 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 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 $184.87.
GuruFocus considers Ares Management to be Possible Value Trap.
Key valuation signals for ARES:
ROC (Joel Greenblatt) %: 306.92% (45% below median its 10-year median of 560.18)
GF Value™: $184.87 vs. price of $121.81 (34.1% below fair value)
Industry Position: 377% above the Asset Management median (#182 of 628)
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
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