ARES COMMERCIAL REAL ESTATE CORPORATION
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$7.51
Market Price
$4.38
Undervalued By
41.7%
Method: Adjusted book value approach: reported book value per share of $8.84 (Q2 2026) less an incremental 15% haircut for continued expected credit deterioration in the commercial real estate loan portfolio beyond existing CECL reserves; 55.37M shares outstanding.
Reasoning: ACRE is a commercial mortgage REIT whose primary assets are first-lien CRE loans; with revenue declining and recent quarters posting losses from credit costs (concentrated in office-sector exposure), a credit-adjusted book value is a more reliable intrinsic-value proxy than a DCF of currently negative and volatile earnings.