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Ares Commercial Real Estate Corp (NYSE:ACRE)

12.76 USD -0.18 USD ( -1.39% )
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Ares Commercial Real Estate Corp Logo
Ares Commercial Real Estate Corp
NYSE:ACRE
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Relative Value

The Relative Value of one ACRE stock under the Base Case scenario is 33.66 USD. Compared to the current market price of 12.76 USD, Ares Commercial Real Estate Corp is Undervalued by 62%.

Relative valuation is one of two methods of placing a monetary value on a company; the other is Discounted Cash Flow valuation method. We use a combination of these two methods to calculate the Intrinsic Value of stock as accurately as possible.

ACRE Relative Value
Base Case
33.66 USD
Undervaluation 62%
Relative Value
Price
Worst Case
Base Case
Best Case

Valuation Multiples

Median 5.3
Industry 4.3
Forward Multiple 7.4
Median 17.9
Industry 10.8
Forward Multiple 8.9
Median 19.5
Industry 12.6
Forward Multiple N/A
Median -
Industry 13.8
Forward Multiple N/A
Median 1.3
Industry 0.9
Forward Multiple N/A
Median 14.9
Industry 7.5
Forward Multiple 26.5
Median 1.1
Industry 0.8
Forward Multiple N/A

Multiples Across Competitors

ACRE Competitors Multiples
Ares Commercial Real Estate Corp Competitors

Country Company Market Cap P/S P/E EV/EBITDA EV/EBIT
US
Ares Commercial Real Estate Corp
NYSE:ACRE
695M USD 4.5 11.4 41.7 41.7
US
Annaly Capital Management Inc
NYSE:NLY
9.2B USD 2.9 3.4 25.1 25.3
US
Starwood Property Trust Inc
NYSE:STWD
6.8B USD 4.8 10.2 48.9 57.7
US
AGNC Investment Corp
NASDAQ:AGNC
6.1B USD N/A N/A N/A N/A
US
Blackstone Mortgage Trust Inc
NYSE:BXMT
4.9B USD 5.4 11.1 59.3 59.3
US
New Residential Investment Corp
NYSE:NRZ
4.6B USD 0.9 3.2 16.1 16.2

See Also

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