AR

Ares Capital CorpNASDAQ ARCC Stock Report

Last reporting period 30 Sep, 2024

Updated 13 Nov, 2024

Last price

Market cap $B

13.055

Large

Exchange

XNAS - Nasdaq

View Section: Eyestock Rating

Ares Fair Value

AR

The fair market value of ARCC stock is 22.14 USD. Relative to the market price of 21.61 USD Ares is undervalued by 2.4%

Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.

Fair Relative Value

Undervalued 2.4%
22.14 USD
ARCC Fair Value
21.61 USD
Market price of ARCC

Ares Valuation

Current ARCC share ticker price is 21.61 USD.

The fair value level of 22.14 USD can be considered as an effective entry point for long-term investors to start investing in ARCC stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.

Price chart is not available

1y
3y
5y
All time
Market price

Current market price

Fair value

Current price is 2% lower its fair value

Min value

Current price is 27% higher its minimum value

Max value

Current price is 87% lower its maximum value

21.11.2024

Market price:

* Eyestock is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on eyestock.io represent a recommendation to buy or sell a security.

ARCC stock is undervalued

It means the current price may concern as a Moderate Risk Entry Point

Ares Capital Corp Stock Valuation Calculator

How do we value a stock?

As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.

1

Maximum P/E over 5 years

15.43

2

Median P/E over 5 years

8.46

3

Minimum P/E over 5 years

6.06

4

Earning per share (last 12 months)

2.62 USD

Maximum value

1

x

4

=

40.38 USD

Fair value

2

x

4

=

22.14 USD

Minimum value

3

x

4

=

15.87 USD

Ares Capital Corp price metrics

2.83

Annual return (geometric mean)

33.27

Risk (standard deviation) of returns

β

1.08

Beta (volatility compared to market)

It means that ARCC stock is more volatile than the broader market

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View Section: Profitability