Ares Capital Corporation (ARCC) Valuation
Historical valuation analysis based on 500 data points (2024-09-23 to 2026-09-21)
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 inves...
Ares Capital Corporation (ARCC) currently trades at a P/E ratio of 12.14 (historical range: 7.15–12.61, median: 10.11), placing it at the 94th percentile — expensive relative to its history, P/S ratio of 4.57 (range: 4.00–5.33, 32th percentile — below its historical average), EV/EBITDA of 13.02 (range: 11.89–13.77, 59th percentile).
Over the historical period (2024-09-23 to 2026-09-21), Ares Capital Corporation's P/E ratio has expanded by 18% over the observed period (from an average of 9.2 to 10.8).
Ares Capital Corporation appears slightly overvalued relative to its historical range, with most valuation metrics above their median levels.
Historical Valuation Metrics
| Metric | Current | Min | Median | Max | Percentile | Assessment |
|---|---|---|---|---|---|---|
| P/E Ratio | 12.14 | 7.15 | 10.11 | 12.61 | 94th | expensive relative to its history |
| P/S Ratio | 4.57 | 4.00 | 4.70 | 5.33 | 32th | below its historical average |
| EV/EBITDA | 13.02 | 11.89 | 12.93 | 13.77 | 59th | near its historical average |
Ares Capital Corporation (ARCC) Valuation & P/E History
Ares Capital Corporation (ARCC) is a US-listed stock operating in the Other sector currently trading at $19.47 with a market capitalization of $14.0 billion. This page provides historical valuation analysis for ARCC based on 500 data points covering 2024-09-23 to 2026-09-21. The P/E ratio of 12.14 is above the historical median of 10.11, placing ARCC at the 94th percentile of its valuation range. The P/S ratio of 4.57 compares to a median of 4.70.
ARCC Valuation Metrics & Historical Range
The valuation table above shows Ares Capital Corporation's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether ARCC is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests ARCC is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Ares Capital Corporation.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is ARCC Overvalued or Undervalued?
Ares Capital Corporation appears slightly overvalued relative to its historical range, with most valuation metrics above their median levels. The overall valuation percentile of 62 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive ARCC is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full ARCC analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.ARCC trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.