Using the PEG framework with analyst consensus forward EPS growth of 25.0%, Ares Management Corporation has a fair value of $161.09 based on NTM EPS (FY2026) of $6.44. The current PEG ratio is 0.17.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 98.3% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $6.44 |
| Fair Value | $161.09 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $1.96 | — | — |
| FY2026E | $6.44 | +228.8% | 6 |
| FY2027E | $7.71 | +19.6% | 6 |
2Y Forward EPS CAGR: 98.3%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $408.8M | $2.15 | — |
| FY2022 | $167.5M | $0.87 | -59.5% |
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.
| FY2023 | $474.3M | $2.42 | +178.2% |
| FY2024 | $463.7M | $2.07 | -14.5% |
| FY2025 | $527.4M | $1.96 | -5.3% |
4Y Historical EPS CAGR: -2.3%