Ares Capital Corporation (ARCC) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Ares Capital Corporation stock (ARCC) is currently trading at $18.06. Ares Capital Corporation PE ratio is 9.66. Ares Capital Corporation PS ratio (Price-to-Sales) is 4.22. Analyst consensus price target for ARCC is $21.88. WallStSmart rates ARCC as Hold.
- ARCC PE ratio analysis and historical PE chart
- ARCC PS ratio (Price-to-Sales) history and trend
- ARCC intrinsic value — DCF, Graham Number, EPV models
- ARCC stock price prediction 2025 2026 2027 2028 2029 2030
- ARCC fair value vs current price
- ARCC insider transactions and insider buying
- Is ARCC undervalued or overvalued?
- Ares Capital Corporation financial analysis — revenue, earnings, cash flow
- ARCC Piotroski F-Score and Altman Z-Score
- ARCC analyst price target and Smart Rating
Ares Capital Corporation
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ARCC Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Ares Capital Corporation (ARCC)
ARCC trades 57% above its Graham fair value of $12.65, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Ares Capital Corporation (ARCC) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, operating margin, price/book. Concerns around peg ratio and return on equity. Fundamentals are solid but monitor weak areas for improvement.
Ares Capital Corporation (ARCC) Key Strengths (4)
Keeps $75 of every $100 in revenue after operating costs
Trading below book value, meaning the market prices it less than net assets
Keeps $43 of every $100 in revenue as net profit
Large-cap company with substantial market presence
Supporting Valuation Data
Ares Capital Corporation (ARCC) Areas to Watch (6)
Earnings declining -24.90%, profits shrinking
Very expensive relative to growth, significant premium
Revenue growing slowly at 4.50% annually
Low profitability relative to shareholder equity
Premium valuation at 4.2x annual revenue
Moderate institutional interest at 35.19%
Supporting Valuation Data
Ares Capital Corporation (ARCC) Detailed Analysis Report
Overall Assessment
This company scores 56/100 in our Smart Analysis, earning a C grade. Out of 10 metrics analyzed, 4 register as strengths (avg 9.8/10) while 6 fall into concern territory (avg 2.8/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Operating Margin, Price/Book, Profit Margin. Valuation metrics including Price/Book (0.90) suggest the stock is attractively priced. Profitability is solid with Operating Margin at 75.30%, Profit Margin at 42.60%.
The Bear Case
The primary concerns are EPS Growth, PEG Ratio, Revenue Growth. Some valuation metrics including PEG Ratio (3.72), Price/Sales (4.22) suggest expensive pricing. Growth concerns include Revenue Growth at 4.50%, EPS Growth at -24.90%, which may limit upside. Profitability pressure is visible in Return on Equity at 9.39%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 9.39% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 4.50% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Operating Margin, Price/Book) and negatives (EPS Growth, PEG Ratio). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
ARCC Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
ARCC's Price-to-Sales ratio of 4.22x trades at a deep discount to its historical average of 38.34x (1th percentile). The current valuation is 99% below its historical high of 290.53x set in Dec 2006, and 1% above its historical low of 4.2x in Mar 2026.
WallStSmart Analysis Synopsis
Data-driven financial summary for Ares Capital Corporation (ARCC) · FINANCIAL SERVICES › ASSET MANAGEMENT
The Big Picture
Ares Capital Corporation is a strong growth company balancing expansion with improving profitability. Revenue reached 3.1B with 450% growth year-over-year. Profit margins are strong at 42.6%, reflecting pricing power and operational efficiency.
Key Findings
Revenue growing at 450% YoY, reaching 3.1B. This pace significantly outperforms most ASSET MANAGEMENT peers.
ROE of 939.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
What to Watch Next
Growth sustainability: can Ares Capital Corporation maintain 450%+ revenue growth, or will competition slow it down?
Dividend sustainability with a current yield of 10.5%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor ASSET MANAGEMENT industry trends, competitive moves, and regulatory changes that could impact Ares Capital Corporation.
Bottom Line
Ares Capital Corporation offers an attractive blend of growth (450% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Ares Capital Corporation(ARCC)
NASDAQ
FINANCIAL SERVICES
ASSET MANAGEMENT
USA
Ares Capital Corporation (ARCC) is a leading publicly traded business development company that specializes in providing customized financing solutions to middle-market companies across various sectors. The firm employs a flexible investment strategy, incorporating both debt and equity investments to deliver sustainable risk-adjusted returns to its investors. Backed by rigorous credit assessment and a well-diversified portfolio, Ares Capital focuses on capital preservation while actively pursuing growth opportunities in the private equity space. With the added strength of its parent company, Ares Management Corporation, ARCC benefits from extensive resources and a global footprint, further enhancing its strategic positioning in the market.