--- title: "Ares Management (ARES) Could Be 2% Undervalued On Q2 Results And MedImpact Loan" type: "News" locale: "en" url: "https://longbridge.com/en/news/297084152.md" description: "Ares Management (ARES) faces valuation debate following Q2 results and a $2.2B MedImpact loan. While one narrative suggests the stock is 2% undervalued at $145.24 due to rising perpetual capital and fee revenue, its P/E ratio of 56.7x significantly exceeds industry peers. The article highlights mixed recent performance but strong long-term returns, urging investors to weigh growth potential against current valuation premiums." datetime: "2026-08-26T20:18:52.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/297084152.md) - [en](https://longbridge.com/en/news/297084152.md) - [zh-HK](https://longbridge.com/zh-HK/news/297084152.md) generator: "portal-rs" --- # Ares Management (ARES) Could Be 2% Undervalued On Q2 Results And MedImpact Loan Ares Management (ARES) is back in focus after its Jul. 31 Q2 report and a new role leading a US$2.2b direct loan for MedImpact Holding. Both developments give investors fresh data to reassess the stock. Ares Management’s recent Q2 report and the MedImpact loan mandate arrive after a mixed year for the stock. The share price is at US$142.76 and a 30 day share price return of 12.84% contrasts with a year to date share price decline of 14.17% and a 1 year total shareholder return decline of 17.27%. Over longer periods, the picture is different. Three year and 5 year total shareholder returns of 53.27% and 116.24% point to earlier momentum that has cooled in the past year as investors reassess both growth potential and risks around earnings quality and deal activity. Assess how Ares Management fits into your portfolio by comparing it with a curated 49 high quality undervalued stocks, designed to pair healthy cash flows with sturdier balance sheets. The recent rebound in Ares Management’s share price leaves only a narrow gap to the average analyst target, yet a much wider spread to some intrinsic value estimates. Where does fair value really sit in that range? ## Most Popular Narrative: 2% Undervalued Ares Management’s most followed narrative points to a fair value of about $145.24, only slightly above the last close at $142.76, which keeps the valuation debate finely balanced. > *The significant ramp in perpetual capital (now nearly 50% of fee-paying AUM), combined with consistent investment performance and low client redemptions, is expected to drive higher recurring fee revenues, greater profitability, and improved earnings visibility. High levels of un-deployed capital (dry powder) and a record investment pipeline position Ares to quickly convert AUM not yet paying fees into fee-generating assets, accelerating management fee and net earnings growth over the next 12-18 months.* Read the complete narrative. Want to see what sits behind that confidence in recurring fees and earnings power? The narrative leans heavily on a particular revenue path and a much richer profit margin profile. Curious how those assumptions work together to support a fair value above today’s price and what kind of earnings multiple that implies for Ares Management in a few years? **Result: Fair Value of $145.24 (UNDERVALUED)** Have a read of the narrative in full and understand what's behind the forecasts. However, the Ares Management narrative still hinges on stable fees in a crowded private credit market and on new business lines delivering returns without prolonged margin pressure. Find out about the key risks to this Ares Management narrative. ## Another View on Ares Management’s Valuation The most followed narrative frames Ares Management as slightly undervalued, but the current P/E ratio of 56.7x tells a different story. That P/E is far above the US Capital Markets industry at 38.5x and the peer average at 19.2x, and even exceeds a fair ratio estimate of 24.6x. That gap suggests investors are paying a premium that could shrink if sentiment cools or earnings quality comes under more scrutiny. How comfortable are you with that kind of valuation stretch? To see how that premium stacks up in detail and how the numbers line up with the fair ratio, take a closer look at our valuation breakdown See what the numbers say about this price — find out in our valuation breakdown. NYSE:ARES P/E Ratio as at Aug 2026 ## Next Steps If the mix of risks and rewards around Ares Management feels finely balanced, it makes sense to look at the underlying data yourself and move quickly while the information is still fresh. To weigh both sides of the story in one place, start with these 2 key rewards and 3 important warning signs. ## Looking for more investment ideas beyond Ares Management? Do not stop with Ares Management. Use fresh data driven screens to surface other stocks that match your risk tolerance and return goals before the market moves on. - Hunt for potential mispricings by scanning a focused set of companies that combine quality fundamentals with attractive valuations using the 49 high quality undervalued stocks. - Strengthen your income stream by reviewing a curated group of higher yielding stocks that aim to balance payout levels with staying power through the 12 dividend fortresses. - Reduce portfolio stress by filtering for companies that pair sturdier balance sheets with solid fundamentals in the list of solid balance sheet and fundamentals (51 results). *This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.* ### **New:** Manage All Your Stock Portfolios in One Place We've created the **ultimate portfolio companion** for stock investors, **and it's free.** • Connect an unlimited number of Portfolios and see your total in one currency • Be alerted to new Warning Signs or Risks via email or mobile • Track the Fair Value of your stocks Try a Demo Portfolio for Free ### Related Stocks - [ARES.US](https://longbridge.com/en/quote/ARES.US.md) - [ARES-B.US](https://longbridge.com/en/quote/ARES-B.US.md) ## Related News & Research - [Here's How Much $1000 Invested In Ares Management 10 Years Ago Would Be Worth Today](https://longbridge.com/en/news/296940009.md) - [European private credit booms as private equity firms are forced to refinance](https://longbridge.com/en/news/296805673.md) - [Ares Management Stock: Analyst Estimates & Ratings](https://longbridge.com/en/news/296803107.md) - [Oppenheimer Increases Ares Management (NYSE:ARES) Price Target to $162.00](https://longbridge.com/en/news/297198400.md) - [Does Outperformance in Revenue and Earnings Growth Change The Bull Case For Ares Management (ARES)?](https://longbridge.com/en/news/296139279.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**