Stock fact sheet · data as of
Ares Management Corporation (ARES): fair value, margin of safety and Wheel Score
Ticker symbol ARES · Financial Services · Asset Management · United States · Class A common stock · Growth
ARES is Ares Management Corporation's Class A common stock. The classes own the same business, share the same earnings report and trade within a few cents of each other; what differs is mainly the vote each share carries - the company's annual report sets out the voting rights.
Is ARES undervalued?
ARES closed at 136.85 on 5 Nov 2026, more than 30% above the GLS average fair value of 74.31. Only 1 of the 9 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the "below fair value" Wheel Trade Filter keeps names like this under 70.
There is a wide gap between EPV (21.14) and Payback Time (145.52). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, ARES is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 12, growth score 90, out of 100).
Nine valuation models for ARES
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 80.73 | -41% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 27.32 | -80% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 84.17 | -38% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 34.96 | -74% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 116.46 | -15% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 82.46 | -40% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 145.52 | +6% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 76.07 | -44% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 21.14 | -85% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -51.59 | -138% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 145.88 | +7% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Ares Management Corporation scores 5 of 9 on the Piotroski F-score: a middling result that falls one point short of the "Piotroski 6 or more" Wheel Trade Filter. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 7.6/10 puts ARES among the more durable businesses we track: over up to ten years its returns on capital have stayed high, its margins steady and its balance sheet sound.
Returns on capital are thin or negative - ROIC 2.7%, ROE 12.3%, ROA 1.8% - with debt at 3.49 times equity and a free-cash-flow yield of 1.9%. Debt of 3.49 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is 3.78% at a payout ratio of 444%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Management Service 70%, Carried Interest 18%, Administrative Service 8% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 10/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 2.7% |
|---|---|---|---|
| GLS Moat | 7.6 / 10 | ROE | 12.3% |
| Debt / equity | 3.49 | ROA | 1.8% |
| Free-cash-flow yield | 1.9% | Payout ratio | 444% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 10 / 10 |
Wheel Score 43: Weak
With a Wheel Score of 43 Ares Management Corporation sits in the Weak band. It fails filter 3, below fair value - trades 84% above our fair value; and filter 4, financially healthy - Piotroski 5/9 (under 6); Value (weak) is its weakest part.
Implied volatility is 42% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 51,117 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 2.6M shares a day on a market cap of $44.9B, with a beta of 1.51 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 84% above our fair value |
| 4 | Financially healthy | Fails | Piotroski 5/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 84% above fair value | |
| Premium | Strong | implied volatility 42% | |
| Moat | Good | moat 7.6/10 | |
| Health | Fair | Piotroski 5/9 | |
| Red Flags | Good | Red Flags score 82/100 | |
| Option trading | Strong | 11,668 contracts a day, 51,117 open interest | |
| Stability | Good | beta 1.51, $44.9B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for ARES in the nightly calendar. The next ex-dividend date is 17 Dec 2026 (1.35 per share).
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Asset Management
The 12 companies below are the closest to Ares Management Corporation by market cap within the Asset Management industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| AMP Ameriprise Financial, Inc. | 527.41 | 1,276.13 | +59% | 79Good | $45.8B |
| STT State Street Corporation | 173.41 | 261.67 | +34% | 48Weak | $47.2B |
| RNNEX American Funds The New Economy Fund Class R-2E | 77.44 | 48.86 | -58% | 18No options | $50.5B |
| FFFEX Fidelity Freedom 2030 Fund | 20.52 | 0.7953 | -2480% | 15No options | $34.1B |
| FFTHX Fidelity Freedom 2035 Fund | 18.79 | 16.33 | -15% | 14No options | $34.0B |
| RJF Raymond James Financial, Inc. | 168.69 | 294.65 | +43% | 81Good | $32.4B |
| NTRS Northern Trust Corporation | 178.02 | 304.08 | +41% | 80Good | $32.2B |
| NTRSO Northern Trust Corporation | 17.77 | 117.23 | +85% | 38No options | $31.9B |
| JUEZX JPMorgan U.S. Equity Fund Class R2 | 27.99 | 125.21 | +78% | 29No options | $31.7B |
| JMUEX JPMorgan U.S. Equity Fund | 28.75 | 766.25 | +96% | 29No options | $31.7B |
| JUESX JPMorgan U.S. Equity Fund Class I | 28.66 | 128.70 | +78% | 29No options | $31.7B |
| FFEGX Fidelity Freedom Index 2030 Fund | 24.16 | - | - | 15No options | $28.6B |
⚖ Compare ARES with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about ARES
What kind of share is ARES?
ARES is Ares Management Corporation's Class A common stock. The classes own the same business, share the same earnings report and trade within a few cents of each other; what differs is mainly the vote each share carries - the company's annual report sets out the voting rights.
Is ARES undervalued right now?
No: at 136.85 the stock trades 84% above the GLS average fair value of 74.31 (data as of 5 Nov 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of ARES and what does it mean?
ARES scores 43 out of 100 (Weak) - it fails Wheel Trade Filters 3, 4. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for ARES?
74.31 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Ares Management Corporation report earnings next?
No upcoming earnings date is recorded for ARES in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does ARES have listed options, and how liquid are they?
Yes. The nightly snapshot found 744 listed contracts with 51,117 open interest across all expiries and implied volatility of 42% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.