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    Ares Management (ARES) Could Be 14% Undervalued As Fee Growth Drives The Narrative

    Simply Wall St·07/18/2026 21:23:52
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    Ares Management (ARES) has drawn fresh attention after recent trading left the stock about 24% lower year to date, even as its 3 year and 5 year total returns remain strongly positive.

    See our latest analysis for Ares Management.

    Recent trading suggests momentum in Ares Management is still weak, with the share price down 24.44% year to date and the 1 year total shareholder return down 28.83%, despite positive 3 and 5 year total shareholder returns.

    If this shift in sentiment around Ares Management has you reassessing where to put fresh capital, it could be a good time to broaden your search with 18 top founder-led companies

    Ares Management now trades below the average analyst price target, yet the recent share price slide hints at lingering market caution. Is that discount pointing to mispricing, or simply reflecting the risks investors see today?

    Most Popular Narrative: 13.5% Undervalued

    Ares Management last closed at $125.68, while the most widely followed narrative estimates fair value at $145.24. This creates a clear gap that hinges on how earnings and fee growth play out over time.

    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.

    Read the complete narrative.

    Want to see what is behind that conviction on Ares Management? The narrative leans on compound earnings growth, richer margins, and a valuation multiple that assumes those targets are actually hit.

    Result: Fair Value of $145.24 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, Ares Management still faces risks, including fee pressure from heavier competition and execution challenges in newer areas like data centers and sports or media investments.

    Find out about the key risks to this Ares Management narrative.

    Another View On Ares Management Valuation

    The analyst narrative frames Ares Management as about 13.5% undervalued at a fair value of $145.24, yet the current P/E of 50.5x tells a different story. That multiple is well above the US Capital Markets industry at 40x and the fair ratio of 23.4x, which implies meaningful valuation risk if sentiment cools.

    Put simply, the story of Ares Management shifts depending on which lens you use, so which one do you trust when pricing growth, fees, and execution risk?

    See what the numbers say about this price — find out in our valuation breakdown.

    NYSE:ARES P/E Ratio as at Jul 2026
    NYSE:ARES P/E Ratio as at Jul 2026

    Next Steps

    If the mixed signals around Ares Management leave you unsure, it is worth moving quickly to weigh both sides of the story for yourself by checking the 2 key rewards and 3 important warning signs.

    Looking for more investment ideas beyond Ares Management?

    If Ares Management has sparked fresh questions about where your next dollar should go, do not stop here. Use focused stock lists to widen your options with intent.

    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.