Question 1

What is Ares Management's P/FCF ratio?

Accepted Answer

Ares Management (ARES) P/FCF ratio is 7.5× as of March 30, 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 Management?

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 Management specifically, the relevant sector benchmark is the current sector median of 12.0×.

Question 5

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

Accepted Answer

Ares Management's P/FCF ratio of 7.5× is below its own 5-year average of 62.1× and below the sector median of 12.0×. That places the current reading at the 9th 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 Management's historical P/FCF ratio range?

Accepted Answer

In the available daily series, Ares Management (ARES) P/FCF ratio has ranged from a low of 0.6× in 2014 to a high of 337.8× in 2023. The 5-year average is 62.1× and the 5-year median is 18.3×.

Question 7

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

Accepted Answer

Ares Management (ARES) P/FCF ratio at the end of 2025 was 16.7×. 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 Management'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	$53.4B	$3.19B	16.7×	-3.1×	Dec 31, 2025
2024	$53.6B	$2.7B	19.8×	—	Dec 31, 2024
2023	$33.7B	-$300M	—	—	Dec 31, 2023
2022	$17.9B	-$770M	—	—	Dec 31, 2022
2021	$19.9B	-$2.62B	—	—	Dec 31, 2021
2020	$9.49B	-$442M	—	—	Dec 31, 2020
2019	$5.75B	-$2.1B	—	—	Dec 31, 2019
2018	$2.55B	-$1.44B	—	—	Dec 31, 2018
2017	$2.46B	-$1.9B	—	—	Dec 31, 2017
2016	$2.32B	-$638M	—	—	Dec 31, 2016
2015	$1.56B	-$539M	—	—	Dec 31, 2015
2014	$2.37B	$1.52B	1.6×	+0.6×	Dec 31, 2014
2013	$2.1B	$2.16B	1.0×	—	Dec 31, 2013


UMB Financial (UMBF)	8.8×
Federal Agricultural Mortgage (AGM)	8.6×
T. Rowe Price (TROW)	8.6×
First Financial (THFF)	8.3×
Old Republic International (ORI)	8.0×
1st Source (SRCE)	8.0×
Auburn National Bancorporation (AUBN)	7.7×
Eagle Financial Services (EFSI)	7.5×
PayPal (PYPL)	7.5×
Assurant (AIZ)	7.5×
Cincinnati Financial (CINF)	7.1×
Alerus Financial (ALRS)	7.0×
American Financial Group (AFG)	6.8×
Hartford Insurance Group (HIG)	6.5×
Travelers Companies (TRV)	6.3×
Invesco (IVZ)	6.1×
Arch Capital Group (ACGL)	5.9×
Principal Financial Group (PFG)	5.5×
Allstate (ALL)	4.7×
Everest Group (EG)	4.6×
Capital One Financial (COF)	3.9×
Prudential Financial (PRU)	3.5×
Mercury General (MCY)	3.4×
MetLife (MET)	2.8×
StoneX Group (SNEX)	0.8×

P/FCF Ratio for Ares Management (ARES) 2013-2026

P/FCF Ratio daily chart for Ares Management (ARES)

Historical P/FCF Ratio for Ares Management (ARES) from 2013 to 2025

About P/FCF Ratio at Ares Management (ARES)

Ares Management P/FCF Ratio by Year

Ares Management P/FCF Ratio 2025: 16.7×

Ares Management P/FCF Ratio 2024: 19.8×

Ares Management P/FCF Ratio 2014: 1.6×

Ares Management P/FCF Ratio 2013: 1.0×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

Ares Management (ARES) Key Financials