Ares Commercial Valuation
| ACRE Stock | USD 7.29 0.07 0.97% |
At this time, the firm appears to be undervalued. Ares Commercial Real shows a prevailing Real Value of $8.78 per share. The current price of the firm is $7.29. Our model approximates the value of Ares Commercial Real from analyzing the firm fundamentals such as return on equity of -0.1, and Profit Margin of (1.62) % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Ares Commercial's valuation include:
Price Book 0.6985 | Enterprise Value 1.7 B | Price Sales 10.0858 | Forward PE 7.3368 | Enterprise Value Revenue 957.6232 |
Undervalued
Today
Please note that Ares Commercial's price fluctuation is not too volatile at this time. Calculation of the real value of Ares Commercial Real is based on 3 months time horizon. Increasing Ares Commercial's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Ares stock is determined by what a typical buyer is willing to pay for full or partial control of Ares Commercial Real. Since Ares Commercial is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Ares Stock. However, Ares Commercial's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 7.29 | Real 8.78 | Target 10.45 | Hype 7.28 |
The real value of Ares Stock, also known as its intrinsic value, is the underlying worth of Ares Commercial Real Company, which is reflected in its stock price. It is based on Ares Commercial's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Ares Commercial's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Ares Commercial Real helps investors to forecast how Ares stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Ares Commercial more accurately as focusing exclusively on Ares Commercial's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Ares Commercial's intrinsic value based on its ongoing forecasts of Ares Commercial's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Ares Commercial's closest peers. If more than one evaluation category is relevant for Ares Commercial we suggest using both methods to arrive at a better estimate.
Ares Commercial Cash |
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Ares Valuation Trend
Comparing Ares Commercial's enterprise value against its market capitalization is a good way to estimate the value of Ares Commercial Real uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
Ares Revenue by Product
Ares Commercial Total Value Analysis
Ares Commercial Real is presently projected to have valuation of 1.67 B with market capitalization of 397.61 M, debt of 1.62 B, and cash on hands of 36.32 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Ares Commercial fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
1.67 B | 397.61 M | 1.62 B | 36.32 M |
Ares Commercial Investor Information
About 44.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 0.7. Some equities with similar Price to Book (P/B) outperform the market in the long run. Ares Commercial Real has Price/Earnings To Growth (PEG) ratio of 2.57. The entity recorded a loss per share of 1.18. The firm last dividend was issued on the 31st of December 2024. Based on the analysis of Ares Commercial's profitability, liquidity, and operating efficiency, Ares Commercial Real may be sliding down financialy. It has an above-average odds of going through some form of financial crisis next quarter.Ares Commercial Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Ares Commercial has an asset utilization ratio of 0.0483 percent. This indicates that the Company is making $4.83E-4 for each dollar of assets. An increasing asset utilization means that Ares Commercial Real is more efficient with each dollar of assets it utilizes for everyday operations.Ares Commercial Ownership Allocation
Ares Commercial holds a total of 54.54 Million outstanding shares. 30% of Ares Commercial Real outstanding shares are owned by other corporate entities. Institutional investors are typically referred to investors that purchase positions in a given stock to benefit from reduced commissions. Consequently, institutional investors are subject to different rules and regulations than regular investors. Please look out for any change in current institutional holding as this could mean something significant has changed at the company or is about to change. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Ares Commercial Profitability Analysis
The company reported the previous year's revenue of 1.1 M. Net Loss for the year was (38.87 M) with profit before overhead, payroll, taxes, and interest of 60.11 M.Ares Commercial Past Distributions to stockholders
| 15th of October 2024 | ||
| 16th of July 2024 | ||
| 16th of April 2024 | ||
| 17th of January 2024 | ||
| 17th of October 2023 | ||
| 18th of July 2023 | ||
| 18th of April 2023 | ||
| 18th of January 2023 |
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Ares Commercial's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Ares Commercial and how it compares across the competition.
About Ares Commercial Valuation
The stock valuation mechanism determines Ares Commercial's current worth on a weekly basis. Our valuation model uses a comparative analysis of Ares Commercial. We calculate exposure to Ares Commercial's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Ares Commercial's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | -93.2 M | -88.6 M | |
| Pretax Profit Margin | (35.34) | (33.57) | |
| Operating Profit Margin | (10.64) | (10.11) | |
| Net Loss | (35.30) | (33.54) | |
| Gross Profit Margin | (84.69) | (80.45) |
A single share of Ares Commercial represents a small ownership stake in the entity. As a stockholder of Ares, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Ares Commercial Dividends Analysis For Valuation
The current year's Dividend Paid And Capex Coverage Ratio is expected to grow to 0.75, whereas Dividends Paid is forecasted to decline to about 41.8 M. . The current year's Price Earnings To Growth Ratio is expected to grow to 0.07, whereas Retained Earnings are projected to grow to (177.7 M).
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 76 M | 41.8 M | |
| Dividend Yield | 0.14 | 0.07 | |
| Dividend Payout Ratio | (1.95) | (1.86) | |
| Dividend Paid And Capex Coverage Ratio | 0.62 | 0.75 |
There are various types of dividends Ares Commercial can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Ares shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Ares Commercial Real directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Ares pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Ares Commercial by the value of the dividends paid out.
Ares Commercial Growth Indicators
Investing in growth stocks can be very risky. If the company such as Ares Commercial does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 54.3 M | |
| Quarterly Earnings Growth Y O Y | 15.981 | |
| Forward Price Earnings | 7.3368 |
Ares Commercial Current Valuation Indicators
Valuation refers to the process of determining the present value of Ares Commercial Real and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Ares we look at many different elements of the entity such as Ares's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Ares Commercial, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Ares Commercial's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Ares Commercial's worth.Complementary Tools for Ares Stock analysis
When running Ares Commercial's price analysis, check to measure Ares Commercial'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 Commercial is operating at the current time. Most of Ares Commercial's value examination focuses on studying past and present price action to predict the probability of Ares Commercial'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 Commercial's price. Additionally, you may evaluate how the addition of Ares Commercial to your portfolios can decrease your overall portfolio volatility.
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