Ares Management EBITDA vs. Price To Sales
| ARES Stock | USD 182.72 1.66 0.92% |
EBITDA | First Reported 2010-12-31 | Previous Quarter 1.2 B | Current Value 814.6 M | Quarterly Volatility 332.2 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Net Profit Margin | 0.18 | 0.1306 |
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| Pretax Profit Margin | 0.35 | 0.367 |
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| Return On Assets | 0.0201 | 0.0192 |
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| Return On Equity | 0.14 | 0.2505 |
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For Ares Management profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ares Management to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ares Management LP utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ares Management's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ares Management LP over time as well as its relative position and ranking within its peers.
Ares |
Ares Management's Revenue Breakdown by Earning Segment
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Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ares Management. If investors know Ares will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ares Management listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.833 | Dividend Share 3.56 | Earnings Share 2.19 | Revenue Per Share 18.885 | Quarterly Revenue Growth 0.683 |
The market value of Ares Management LP is measured differently than its book value, which is the value of Ares that is recorded on the company's balance sheet. Investors also form their own opinion of Ares Management's value that differs from its market value or its book value, called intrinsic value, which is Ares Management's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ares Management's market value can be influenced by many factors that don't directly affect Ares Management's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ares Management's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ares Management is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ares Management's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Ares Management LP Price To Sales vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Ares Management's current stock value. Our valuation model uses many indicators to compare Ares Management value to that of its competitors to determine the firm's financial worth. Ares Management LP is rated below average in ebitda category among its peers. It is rated fourth in price to sales category among its peers . The ratio of EBITDA to Price To Sales for Ares Management LP is about 74,772,910 . At this time, Ares Management's EBITDA is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Ares Management by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Ares Price To Sales vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Ares Management |
| = | 1.15 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Ares Management |
| = | 15.40 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Ares Price To Sales Comparison
Ares Management is currently under evaluation in price to sales category among its peers.
Ares Management Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Ares Management, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ares Management will eventually generate negative long term returns. The profitability progress is the general direction of Ares Management's change in net profit over the period of time. It can combine multiple indicators of Ares Management, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -5.6 M | -5.9 M | |
| Operating Income | 885.8 M | 930.1 M | |
| Income Before Tax | 1.3 B | 1.4 B | |
| Total Other Income Expense Net | 447.3 M | 469.6 M | |
| Net Income | 1.2 B | 1.2 B | |
| Income Tax Expense | 173 M | 181.6 M | |
| Net Income Applicable To Common Shares | 192.7 M | 145.7 M | |
| Net Income From Continuing Ops | 1.2 B | 1.2 B | |
| Interest Income | 685.3 M | 364.7 M | |
| Net Interest Income | -860.9 M | -817.8 M | |
| Non Operating Income Net Other | 24.5 M | 42.1 M | |
| Change To Netincome | 171.6 M | 180.2 M | |
| Net Income Per Share | 2.57 | 2.70 | |
| Income Quality | (0.20) | (0.21) | |
| Net Income Per E B T | 0.36 | 0.20 |
Ares Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Ares Management. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Ares Management position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Ares Management's important profitability drivers and their relationship over time.
Use Ares Management in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Ares Management position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ares Management will appreciate offsetting losses from the drop in the long position's value.Ares Management Pair Trading
Ares Management LP Pair Trading Analysis
The ability to find closely correlated positions to Ares Management could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ares Management when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Ares Management - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Ares Management LP to buy it.
The correlation of Ares Management is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Ares Management moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ares Management LP moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Ares Management can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Ares Management position
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Additional Tools for Ares Stock Analysis
When running Ares Management's price analysis, check to measure Ares Management's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ares Management is operating at the current time. Most of Ares Management's value examination focuses on studying past and present price action to predict the probability of Ares Management's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ares Management's price. Additionally, you may evaluate how the addition of Ares Management to your portfolios can decrease your overall portfolio volatility.