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Fair Value for Ares Capital (ARCC)

See growth priced into Ares Capital (ARCC): reverse DCF, implied rate vs history and analysts, FCF view. Free intrinsic value calculator for education.

Fair value (multi-method)

Four independent methods triangulate what ARCC is worth. The headline is the Forward-DCF intrinsic value at a normalized growth rate; the margin of safety compares it to the current price.

Estimated fair value (Forward DCF)

$60.12

Margin of safety
+68.74% vs current price $18.79

Method range

$7.52 $60.12

median $18.92

Methods disagree

Valuation methods

Each method’s implied fair value per share and its upside versus the current price. Missing methods (no analyst coverage, negative earnings, etc.) are shown as “—”.

  • Forward DCF$60.12
  • Exit multiple$15.96
  • Analyst target$21.88
  • Graham number$7.52

Stock price

$18.79

FCF / share (TTM)

$0.16

3Y FCF CAGR

-6.0%

Fair value @ hist. growth

$1.62

This analysis is for informational purposes only and is not financial advice. Scenario prices and DCF-style figures depend on your assumptions and data from public filings and estimates. They are not forecasts of future returns.

Implied FCF growth

25.5%

per year over your projection horizon

Premium vs DCF

Margin of safety -1057.5% vs hist-growth DCF

Historical 3Y CAGR

-6.0%

Your model implies

25.5%

Analyst consensus is EPS-only — no comparable FCF / share estimate to show on this basis.

Model inputs

Move sliders to test how the reverse DCF reacts. Historical-growth markers show where the company has actually grown over the last cycle.

Discount rate (cost of equity proxy)7.6%
Terminal growth2.50%
Projection years10 yr
FCF growth per year (supplemental projection)-6%
3Y CAGR -6%

Undiscounted FCF per share over 10 years at -6% annual growth.

Sensitivity — implied growth vs your assumptions

Each cell shows the per-share growth rate the market would need to justify the current price at that combination of discount rate (rows) and terminal growth (columns). Your selected inputs are highlighted.

Row axis: discount rate. Column axis: terminal growth.Terminal g →↓ Discount1.5%2.0%2.5%3.0%3.5%
5.6%21.0%19.6%18.0%16.2%13.9%
6.6%24.5%23.3%22.1%20.7%19.0%
7.6%27.5%26.6%25.5%24.4%23.1%
8.6%30.3%29.5%28.6%27.6%26.6%
9.6%32.8%32.1%31.4%30.5%29.7%
Color≤ historical CAGRModerate premiumHigh premium (≥ 15pp above hist)Your inputs

Historical multiples

Each bar is the trailing five-year range (low left, high right). Filled portion runs from low to today; the dot marks today; the small tick marks the five-year median. Low, median, and high are listed under each bar.

P/EToday10.9
5Y low6.0
Median9.0
5Y high15.3
P/SToday4.5· at low
5Y low4.5
Median5.1
5Y high7.7
EV/EBITDAToday13.3
5Y low12.7
Median14.6
5Y high32.5

Net debt

$15.1B

Total debt − cash

Beta

0.62

Vs market benchmark

Frequently asked questions