This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
Median PS Value is calculated as trailing twelve months (TTM) Revenue per Share times 10-Year median PS Ratio. Ares Capital's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $2.833. Ares Capital's 10-Year median PS Ratio is 8.9305. Therefore, the Median PS Value for today is $25.30.
As of today (2024-04-28), Ares Capital's share price is $20.78. Ares Capital's Median PS Value is $25.30. Therefore, Ares Capital's Price to Median PS Value for today is 0.82.
The historical rank and industry rank for Ares Capital's Median PS Value or its related term are showing as below:
ARCC'
s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.65 Med: 1.17 Max: 1.51
Current: 0.82
During the past 13 years, the highest Price to Median PS Value of Ares Capital was 1.51. The lowest was 0.65. And the median was 1.17.
ARCC's Price-to-Median-PS-Value is ranked better than 59.03% of 310
companies
in the Asset Management industry
Industry Median: 0.92
vs ARCC: 0.82
Ares Capital Median PS Value Historical Data
The historical data trend for Ares Capital's Median PS Value can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Ares Capital's Median PS Value
For the Asset Management subindustry, Ares Capital's Price-to-Median-PS-Value, along with its competitors' market caps and Price-to-Median-PS-Value data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ares Capital's Price-to-Median-PS-Value Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Ares Capital's Price-to-Median-PS-Value distribution charts can be found below:
* The bar in red indicates where Ares Capital's Price-to-Median-PS-Value falls into.
Ares Capital Median PS Value Calculation
Ares Capital's Median PS Value for today is calculated as
10-Year Median PS Ratio is 8.9305.
Ares Capital's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.833.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ares Capital (NAS:ARCC) Median PS Value Explanation
This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio
is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.
Ares Capital's Price to Median PS Value for today is calculated as
Price to Median PS Value
=
Share Price
/
Median PS Value
=
20.78
/
25.30
=
0.82
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ares Capital Median PS Value Related Terms
Thank you for viewing the detailed overview of Ares Capital's Median PS Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Ares Capital Corp is a United States-based closed-ended specialty finance company. Its investment objective is to generate both current income and capital appreciation through debt and equity investments. The company focuses on investing primarily in U.S. middle-market companies with investment opportunities as well as in larger companies. Its portfolio comprises of first lien senior secured loans, second lien senior secured loans, and mezzanine debt (subordinated unsecured loan), which may include equity components that are diversified by industry and sector. The company may invest in preferred and common equity investments to a lesser proportion. Its revenue mainly consists of interest and dividend income received from the investment made.
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