Ares Management (ARES) drew attention at the Citizens Financial Services Conference 2025 by spotlighting its capital-light, fee-based approach. The company also pointed to opportunities in asset-based lending and digital infrastructure. Management’s comments come amid shifting market conditions.
See our latest analysis for Ares Management.
Ares Management’s focus on alternative assets and a capital-light model has attracted market attention, but momentum has cooled lately. After climbing sharply in recent years, with Ares delivering a 274.8% total shareholder return over five years, recent price action has softened. The share price is down nearly 19% since January and the total shareholder return is -13.3% over the past year, hinting at a shift in sentiment despite management’s upbeat outlook and resilient business updates.
If the evolving strategies at Ares have you thinking broader, now’s a great moment to check out fast growing stocks with high insider ownership.
With shares trading at a notable discount to analyst targets after recent declines, investors may be wondering whether Ares Management is now undervalued or if the market has already priced in the company’s future growth prospects.
With Ares Management now trading well below the most widely followed narrative fair value of $183.94, the market’s recent downturn contrasts sharply with upbeat analyst expectations. The narrative points to a notable gap between price action and consensus future outlook, inviting closer scrutiny of the numbers behind the optimism.
“Growing institutional and retail demand for alternative investments, fueled by persistent low-to-moderate interest rates and demographic-driven underfunded pensions, is accelerating Ares’ AUM growth and providing strong visibility to future management and fee-related revenue. Expansion into multiple asset classes (infrastructure, real estate, sports/media, secondaries), with recent successes like the GCP acquisition and the scaling of data center asset management, are expected to deliver higher management and development fees, supporting long-term revenue and FRE growth.”
This narrative is built on bold forecasts for revenue expansion, margin recovery, and an earnings jump that would flip the company’s profit profile. Want to see which future milestones this outlook relies on and which financial assumptions could turbocharge that lofty fair value? The complete breakdown will surprise you.
Result: Fair Value of $183.94 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
