The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Ares Management's share price is $131.91.
Ares Management's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $25.04. Hence, Ares Management's PS Ratio for today is 5.27.
Warning Sign:
Ares Management Corp stock PS Ratio (=5.29) is close to 10-year high of 5.46
The historical rank and industry rank for Ares Management's PS Ratio or its related term are showing as below:
ARES'
s PS Ratio Range Over the Past 10 Years
Min: 0.63 Med: 1.72 Max: 5.46
Current: 5.12
During the past 13 years, Ares Management's highest PS Ratio was 5.46. The lowest was 0.63. And the median was 1.72.
ARES's PS Ratio is ranked better than 68.34% of 1412
companies
in the Asset Management industry
Industry Median: 8.52
vs ARES: 5.12
During the past 12 months, the average Revenue per Share Growth Rate of Ares Management was 19.90% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 21.40% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 12.80% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 2.50% per year.
During the past 13 years, Ares Management's highest 3-Year average Revenue per Share Growth Rate was 24.90% per year. The lowest was -32.40% per year. And the median was -0.50% per year.
Back to Basics: PS Ratio
Ares Management PS Ratio Historical Data
The historical data trend for Ares Management's PS Ratio 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 Management's PS Ratio
For the Asset Management subindustry, Ares Management's PS Ratio, along with its competitors' market caps and PS Ratio 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 Management's PS Ratio Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Ares Management's PS Ratio distribution charts can be found below:
* The bar in red indicates where Ares Management's PS Ratio falls into.
Ares Management PS Ratio Calculation
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Ares Management's Share Price of today is $131.91. Ares Management'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 $25.04.
* 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.
It can also be calculated from the numbers for the whole company:
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
Ares Management PS Ratio Related Terms
Thank you for viewing the detailed overview of Ares Management's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Ares Management (Ares Management) Business Description
Ares Management Corp is an asset management company based in the United States. It offers investors investment-related advice and strategies for capital growth. The company's operating segments include Credit Group, Private Equity Group, Real Estate Group, Secondaries Group, and Strategic Initiatives. Its Credit Group generates maximum revenue, and manages credit strategies across the liquid and illiquid spectrum. Private Equity Group manages investment strategies categorized as corporate private equity, infrastructure and power, and special opportunities, Real Estate Group is engaged in managing real estate equity and debt strategies. The Secondary Solutions Group invests in secondary markets across a range of asset class including private equity, real estate, and infrastructure.
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