What is Ares Capital Corporation (ARCC)'s PEG ratio?

Ares Capital Corporation (ARCC) has a PEG ratio of 1.45 (Fairly Valued), based on a PE ratio of 15.0 and expected EPS growth of 10.3% (5-Year EPS CAGR).

Is ARCC undervalued based on its PEG ratio?

A PEG below 1.0 is conventionally read as potentially undervalued, 1.0–2.0 as fairly valued, and above 2.0 as potentially overvalued relative to growth. At 1.45, Ares Capital Corporation (ARCC) screens as "Fairly Valued". PEG is one signal, not investment advice — see the full DCF fair value at evidinvest.com/valuation/ARCC.

Ares Capital Corporation (ARCC) PEG Ratio

Fairly Valued

PE ratio relative to earnings growth — is the valuation justified?

1.45

PEG Ratio

PEG ratio is generally unreliable for Financial Services companies — earnings are driven by interest margins and provisions

PEG ratio is generally unreliable for Financial Services companies

1.45

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$20.19

TTM EPS

$1.35

P/E Ratio

14.96

Growth Rate

10.3%

5-Year EPS CAGR

Sector

Financial Services

Asset Management

Calculated

8/18/2026

10:30:27 AM

Peer Comparison

Sample Size

6 peers

Industry Median PEG

0.33

25th Percentile

0.16

75th Percentile

2.25

ARCC PEG (1.45) vs Industry Median (0.33): 337% premium

Symbol	Company	PEG	P/E	Growth	vs ARCC
GAIN	Gladstone Investment Corp.	0.12	3.7	30.1%	-91%
MAIN	Main Street Capital Corporation	0.16	10.6	65.1%	-89%
CGBD	Carlyle Secured Lending, Inc.	0.32	21.4	66.4%	-78%
GLAD	Gladstone Capital Corporation	0.34	10.4	30.2%	-76%
PFLT	PennantPark Floating Rate Capital Ltd.	2.25	20.0	8.9%	+55%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.

Ares Capital Corporation (ARCC) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on ARCC

Compare with peers

Explore

Ares Capital Corporation (ARCC) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on ARCC

Compare with peers

Explore