Question 1

What is Ares Capital's P/FCF ratio?

Accepted Answer

Ares Capital (ARCC) P/FCF ratio is 12.6× as of June 5, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month free cash flow, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/FCF ratio calculated?

Accepted Answer

P/FCF = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Free Cash Flow, where Free Cash Flow = Operating Cash Flow − Capital Expenditures. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/FCF ratio?

Accepted Answer

The price-to-free-cash-flow (P/FCF) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) free cash flow. It is calculated as market cap ÷ TTM free cash flow, where free cash flow = operating cash flow − capital expenditures. Because FCF cannot be inflated by non-cash accounting items, P/FCF is often considered a cleaner measure of "earnings-power valuation" than P/E — especially for capital-intensive businesses where depreciation diverges from real cash outflows.

Question 4

What is a good P/FCF ratio for Ares Capital?

Accepted Answer

Mature companies that consistently convert profit into cash often trade at 15–25× P/FCF; capital-intensive businesses with lumpy capex typically trade lower. Compare against sector peers and against the company's own multi-year average — single-year P/FCF can be distorted by working-capital swings. For Ares Capital specifically, the relevant sector benchmark is the current sector median of 11.1×.

Question 5

Is Ares Capital's P/FCF ratio high or low?

Accepted Answer

Ares Capital's P/FCF ratio of 12.6× is above its own 5-year average of 11.3× and above the sector median of 11.1×. That places the current reading at the 89th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is Ares Capital's historical P/FCF ratio range?

Accepted Answer

In the available daily series, Ares Capital (ARCC) P/FCF ratio has ranged from a low of 3.4× in 2020 to a high of 1233.1× in 2021. The 5-year average is 11.3× and the 5-year median is 11.3×.

Question 7

What was Ares Capital's P/FCF ratio in 2025?

Accepted Answer

Ares Capital (ARCC) P/FCF ratio at the end of 2025 was 12.4×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month free cash flow figure available at that date.

Question 8

Why does Ares Capital's P/FCF ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (free cash flow). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$14.14B	$1.14B	12.4×	+1.2×	Dec 31, 2025
2024	$14.34B	$1.28B	11.2×	+0.1×	Dec 31, 2024
2023	$11.10B	$1.00B	11.1×	-1.6×	Dec 31, 2023
2022	$9.49B	$746.00M	12.7×	+2.2×	Dec 31, 2022
2021	$9.81B	$935.00M	10.5×	+0.8×	Dec 31, 2021
2020	$7.11B	$734.00M	9.7×	-2.1×	Dec 31, 2020
2019	$8.00B	$681.00M	11.7×	+1.8×	Dec 31, 2019
2018	$6.64B	$666.00M	10.0×	—	Dec 31, 2018
2017	$6.68B	−$1.94B	—	—	Dec 31, 2017
2016	$5.18B	$639.12M	8.1×	-4.3×	Dec 31, 2016
2015	$4.46B	$360.38M	12.4×	—	Dec 31, 2015
2014	$4.89B	−$658.55M	—	—	Dec 31, 2014
2013	$4.74B	−$1.30B	—	—	Dec 31, 2013
2012	$4.03B	−$250.93M	—	—	Dec 31, 2012
2011	$3.17B	−$396.91M	—	—	Dec 31, 2011
2010	$3.14B	−$656.49M	—	—	Dec 31, 2010
2009	$1.27B	$12.26M	103.3×	—	Dec 31, 2009
2008	$567.59M	−$309.01M	—	—	Dec 31, 2008
2007	$1.06B	−$514.16M	—	—	Dec 31, 2007
2006	$1.01B	−$518.26M	—	—	Dec 31, 2006
2005	$610.48M	−$349.97M	—	—	Dec 31, 2005


Assurant (AIZ)	7.5×
Progressive (PGR)	7.1×
Cincinnati Financial (CINF)	7.1×
Alerus Financial (ALRS)	7.0×
Interactive Brokers (IBKR)	6.9×
Invesco (IVZ)	6.9×
American Financial Group (AFG)	6.8×
The Hartford (HIG)	6.5×
Commerce Bancshares (CBSH)	6.4×
Bank of America (BAC)	6.3×
Arch Capital Group (ACGL)	5.9×
JPMorgan Chase (JPM)	5.8×
Travelers Companies (TRV)	5.5×
Principal Financial Group (PFG)	5.5×
Everest Re Group (RE)	5.0×
Allstate (ALL)	4.7×
Everest Re Group (EG)	4.6×
Capital One Financial (COF)	3.9×
Prudential Financial (PRU)	3.5×
Mercury General (MCY)	3.4×
RenaissanceRe Holdings (RNR)	3.0×
MetLife (MET)	2.8×
Synchrony Financial (SYF)	2.4×
Atlantic Union Bankshares (AUB)	2.2×
StoneX Group (SNEX)	0.8×

P/FCF Ratio for Ares Capital (ARCC)

P/FCF Ratio daily chart for Ares Capital (ARCC)

Historical P/FCF Ratio for Ares Capital (ARCC) from 2005 to 2025

About P/FCF Ratio at Ares Capital (ARCC)

Ares Capital P/FCF Ratio by Year

Ares Capital P/FCF Ratio 2025: 12.4×

Ares Capital P/FCF Ratio 2024: 11.2×

Ares Capital P/FCF Ratio 2023: 11.1×

Ares Capital P/FCF Ratio 2022: 12.7×

Ares Capital P/FCF Ratio 2021: 10.5×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

Ares Capital (ARCC) Key Financials

P/FCF Ratio daily chart for Ares Capital (ARCC)

Historical P/FCF Ratio for Ares Capital (ARCC) from 2005 to 2025

About P/FCF Ratio at Ares Capital (ARCC)

Ares Capital P/FCF Ratio by Year

Ares Capital P/FCF Ratio 2025: 12.4×

Ares Capital P/FCF Ratio 2024: 11.2×

Ares Capital P/FCF Ratio 2023: 11.1×

Ares Capital P/FCF Ratio 2022: 12.7×

Ares Capital P/FCF Ratio 2021: 10.5×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

+What is Ares Capital's P/FCF ratio?

+How is the P/FCF ratio calculated?

+What is the P/FCF ratio?

+What is a good P/FCF ratio for Ares Capital?

+Is Ares Capital's P/FCF ratio high or low?

+What is Ares Capital's historical P/FCF ratio range?

+What was Ares Capital's P/FCF ratio in 2025?

+Why does Ares Capital's P/FCF ratio change over time?

Ares Capital (ARCC) Key Financials