Ares Commercial Real Estate Corp
NYSE:ACRE
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its Industry Average (34), the stock would be worth $-0.46 (109% downside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | -386.6 | $5.2 |
0%
|
| Industry Average | 34 | $-0.46 |
-109%
|
| Country Average | 19.6 | $-0.26 |
-105%
|
Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
|
$1.3B
|
/ |
Jan 2026
$-3.4m
|
= |
|
|
$1.3B
|
/ |
Dec 2026
$34.8m
|
= |
|
|
$1.3B
|
/ |
Dec 2027
$38.7m
|
= |
|
|
$1.3B
|
/ |
Dec 2028
$4.9m
|
= |
|
Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
Ares Commercial Real Estate Corp
NYSE:ACRE
|
286.1m USD | -386.6 | -317.2 | |
| US |
N
|
New Residential Investment Corp
LSE:0K76
|
421.6B USD | 582.7 | 743.3 | |
| US |
|
Annaly Capital Management Inc
NYSE:NLY
|
15.9B USD | 64 | 8.5 | |
| US |
|
AGNC Investment Corp
NASDAQ:AGNC
|
12B USD | 68 | 8 | |
| US |
|
Starwood Property Trust Inc
NYSE:STWD
|
6.7B USD | 251.1 | 16.7 | |
| US |
|
Rithm Capital Corp
NYSE:RITM
|
5.6B USD | 50.1 | 9.9 | |
| US |
|
Hannon Armstrong Sustainable Infrastructure Capital Inc
NYSE:HASI
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5.3B USD | -382.4 | 29.1 | |
| US |
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Blackstone Mortgage Trust Inc
NYSE:BXMT
|
3.4B USD | 181.7 | 30.6 | |
| US |
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Dynex Capital Inc
NYSE:DX
|
2.8B USD | 264.2 | 10.7 | |
| US |
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ARMOUR Residential REIT Inc
NYSE:ARR
|
2B USD | 62 | 6.3 | |
| US |
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Arbor Realty Trust Inc
NYSE:ABR
|
1.5B USD | 76.4 | 14.2 |
Market Distribution
| Min | 0 |
| 30th Percentile | 13.6 |
| Median | 19.6 |
| 70th Percentile | 27.8 |
| Max | 1 826 183.2 |
Other Multiples
Ares Commercial Real Estate Corp
Glance View
Ares Commercial Real Estate Corp. engages in originating and investing in commercial real estate loans and related investments. The company is headquartered in New York City, New York and currently employs 2,100 full-time employees. The company went IPO on 2012-04-26. The firm is primarily engaged in originating and investing in commercial real estate loans and related investments. The firm operates through an operating segment primarily focused on directly originating and managing a diversified portfolio of commercial real estate (CRE) debt-related investments for the Company’s own account. The Company’s investments include senior mortgage loans, subordinated debt, preferred equity, mezzanine loans and other CRE investments, including commercial mortgage-backed securities. These investments are generally held for investment and are secured, directly or indirectly, by office, multifamily, retail, industrial, lodging, self-storage, student housing, residential and other commercial real estate properties, or by ownership interests therein. The Company’s portfolio is externally managed by Ares Commercial Real Estate Management LLC (the Manager).