SharesGrow 7-Criteria Score
All 7 criteria scored · valuation-related highlighted on this page
Ares Capital Corporation (ARCC) trades at a trailing P/E of 9.7, forward P/E of 9.6. Trailing earnings yield is 10.32%, forward earnings yield 10.40%. PEG 2.35. Graham Number is $29.27.
Criteria proven by this page:
- VALUE (86/100, Pass) — P/E is below market average (9.7); analyst target implies upside (+17.4%); earnings yield beats bond yields (10.32%).
- Forward P/E 9.6 (down from trailing 9.7) — analysts expect earnings to grow, which would improve the valuation.
- PEG Ratio 2.35 — above 2.0 suggests expensive relative to earnings growth.
- Trailing Earnings Yield 10.32% — exceeds typical bond yields (~4.3%), making equity attractive vs fixed income. Forward yield improves to 10.40% as earnings recover.
- Analyst consensus target $21.88 (+17.4% upside) — significant upside potential according to Wall Street analysts.
Overall SharesGrow Score: 85/100 with 5/7 criteria passed.
SharesGrow 7-Criteria Score
✓
VALUE
86/100
Price-to-Earnings & upside
Proven by this page
~
HEALTH
67/100
Debt-to-Equity & liquidity
→ Health
Valuation Snapshot — ARCC
Valuation Multiples
P/E (TTM)9.7
Forward P/E9.6
PEG Ratio2.35
Forward PEG2.35
P/B Ratio0.88
P/S Ratio5.58
EV/EBITDA17.6
Per Share Data
EPS (TTM)$1.86
Forward EPS (Est.)$1.94
Book Value / Share$20.48
Revenue / Share$3.31
FCF / Share$1.63
Yields & Fair Value
Earnings Yield10.32%
Forward Earnings Yield10.40%
Dividend Yield10.67%
Graham Number$29.27
SharesGrow IV$45.53 (+144.4%)
Analyst Target$21.88 (+17.4%)
Historical Valuation
| Year |
P/E (TTM) |
PEG Ratio |
P/B Ratio |
P/S Ratio |
Dividend Yield |
| 2016 |
10.9 |
0.42 |
1.00 |
7.03 |
9.21% |
| 2017 |
10.0 |
2.52 |
0.94 |
6.86 |
9.61% |
| 2018 |
7.7 |
0.28 |
0.91 |
5.93 |
9.88% |
| 2019 |
10.0 |
-1.35 |
1.07 |
7.14 |
8.71% |
| 2020 |
14.8 |
-0.38 |
1.00 |
8.35 |
9.48% |
| 2021 |
6.0 |
0.03 |
1.07 |
4.61 |
7.34% |
| 2022 |
15.3 |
-0.23 |
0.96 |
7.69 |
9.92% |
| 2023 |
7.3 |
0.06 |
0.99 |
5.12 |
9.29% |
| 2024 |
9.0 |
-0.80 |
1.02 |
5.77 |
8.34% |
| 2025 |
10.9 |
-0.46 |
0.99 |
4.50 |
1.90% |
P/E Ratio & Earnings Yield
Earnings Per Share (EPS) History
| Year |
EPS (Diluted) |
Revenue |
Net Income |
Net Margin |
| 2016 |
$1.51 |
$688M |
$474M |
68.9% |
| 2017 |
$1.57 |
$893M |
$667M |
74.7% |
| 2018 |
$2.01 |
$1.08B |
$858M |
79.5% |
| 2019 |
$1.86 |
$824M |
$793M |
96.2% |
| 2020 |
$1.14 |
$541M |
$484M |
89.5% |
| 2021 |
$3.51 |
$1.68B |
$1.57B |
93.4% |
| 2022 |
$1.19 |
$741M |
$600M |
81% |
| 2023 |
$2.68 |
$1.64B |
$1.52B |
93% |
| 2024 |
$2.25 |
$1.71B |
$1.52B |
89.1% |
| 2025 |
$1.86 |
$3.15B |
$1.3B |
41.3% |
Analyst Estimates
| Year |
EPS (Avg) |
EPS Range |
Revenue (Avg) |
Revenue Range |
Analysts |
| 2026 |
$1.94 |
$1.87 – $1.98 |
$3.16B |
$3.05B – $3.26B |
10 |
| 2027 |
$1.92 |
$1.90 – $1.93 |
$3.28B |
$3.17B – $3.43B |
10 |
| 2028 |
$1.85 |
$1.78 – $1.93 |
$3.18B |
$2.96B – $3.33B |
2 |
