Using the industry peer median P/E multiple (trailing + forward), Ares Management Corporation (ARES) has a fair value of $52.73 based on 6 comparable companies in the Asset Management industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Ares Management CorporationARES | 23,401 | 54.9x | 21.5x |
| Morgan StanleyMS | 260,679 | 16.1x | 16.6x |
| Apollo Global Management, Inc.APO | 64,346 | 15.3x | 14.0x |
| State Street CorporationSTT | 35,163 | 13.4x | 12.4x |
| Raymond James Financial, Inc.RJF | 28,655 | 14.1x | 14.0x |
| Huntington Bancshares IncorporatedHBAN | 22,916 | 11.1x | 12.9x |
| Brown & Brown, Inc.BRO | 22,237 | 20.6x | 17.3x |
| Industry Median | 14.7x | 14.0x | |
| (*) Profit after tax | 527 | 1,087 | |
| Equity Value | 7,741 | 15,183 | |
| (/) Outstanding shares | 217 | 217 | |
| Fair Price | $36 | $70 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.