ARES Price Forecast Based on Dividend Discount Model

For dividend yielding stocks, the Dividend Discount Model (DDM) is a common valuation tool; it attempts to extrapolate a fair share price based primarily on the dividend the stock provides relative to a number of other quantiative aspects of its business. In the case of ARES, the DDM model, as implemented by StockNews, implies a negative return of 19.82% relative to its current price. To help understand and contextualize the model's evaluation of ARES, investors may wish to consider are:

• In comparison to stocks we observe that provide shareholders with a dividend, Ares Management Corp produces a dividend yield 3.37% -- which falls in the top 34.64%.
• Ares Management Corp's market cap of $12 billion US dollars puts it in the large-sized market cap class; amongst this group of stocks, its equity discount rate is lower than 34.21% of them.
• Amongst its dividend-issuing peers in the large-sized market cap category, ARES's beta -- a measure of volatility relative to the market at large -- is lower than 34.21% of them.

ARES Dividends vs. Peers