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Is this Large Market Cap Stock target price reasonable for Ares Capital Corporation (NASDAQ:ARCC)?

The company in question is, Ares Capital Corporation (NASDAQ:ARCC) currently with a stock price of 15.19 (-1.20% today). The market cap for Ares Capital Corporation is 4806.81, and is in the sector Financial, and Diversified Investments industry. The target price for Ares Capital Corporation is 16.67. Currently Ares Capital Corporation is trading with a P/E of 11.49, and a forward P/E of 9.52. Average volume for Ares Capital Corporation is 1986.59 and so far today it is 1785117.

Performance in the last year for Ares Capital Corporation has been 13.35%. For EPS growth, Ares Capital Corporation has seen a growth of -37.80%, and is looking to grow in the next year to 5.42%. More long term stats show that EPS growth has been -21.00% over the last five years and could be 2.75% for the next five years. Ares Capital Corporation has seen sales growth quarter over quarter at -1.70%, with EPS growth quarter over quarter at 7.60%. The 20-day simple moving average is -1.80%, with the 200-day simple moving average coming to 7.75%.

Since the IPO date for Ares Capital Corporation on the 10/05/2004, Ares Capital Corporation has seen performance year to date to be 16.65%. With Ares Capital Corporation trading at 15.19, the dividend yield is 9.89%, and the EPS is 1.34.

So could Ares Capital Corporation, be undervalued? Well as said before P/E is 11.49. The PEG is 4.18, P/S is 4.73 and the P/B is at 0.92. The P/cash is 38.18, with P/free cash flow at *TBA.

Ares Capital Corporation ability to deal with debt shows that the current ratio is *TBA, and the quick ratio is *TBA. This is with long term debt/equity at 0.73, and total debt/equity at 0.73.

In terms of margins, Ares Capital Corporation has a gross margin of 54.20%, an operating margin of 50.20% and a profit margin of 41.40%.Payout ratio for Ares Capital Corporation is 117.30%. Return on assets come to 4.50% with return on investment coming to 5.40%.

Insider ownership for Ares Capital Corporation, is at 0.10% and institutional ownership comes to 50.30%. Outstanding shares are at 312.74. While shares float is 312.21. The float short is currently 8.94%, and short ratio is 14.04.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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