Ares Capital Corporation
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$20.35
Market Price
$18.67
Undervalued By
8.3%
Method: NAV-based (justified P/NAV) valuation: $19.35/share NAV as of Q2 2026; justified P/NAV = normalized ROE (~10% NII yield on NAV) divided by cost of equity (~9.5%) = 1.05x; 718.02M shares outstanding.
Reasoning: Ares Capital is a BDC where NAV, not a cash-flow DCF, is the standard valuation anchor; ARCC's modest premium to NAV reflects its scale, diversified $29.3B middle-market credit portfolio, and above-peer underwriting/origination track record versus other BDCs.