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Ares Commercial Real Estate (FRA:41I) Shiller PE Ratio : 6.38 (As of May. 24, 2024)


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What is Ares Commercial Real Estate Shiller PE Ratio?

As of today (2024-05-24), Ares Commercial Real Estate's current share price is €6.375. Ares Commercial Real Estate's E10 for the quarter that ended in Mar. 2024 was €1.00. Ares Commercial Real Estate's Shiller PE Ratio for today is 6.38.

The historical rank and industry rank for Ares Commercial Real Estate's Shiller PE Ratio or its related term are showing as below:

FRA:41I' s Shiller PE Ratio Range Over the Past 10 Years
Min: 5.96   Med: 8.67   Max: 13.65
Current: 6.31

During the past years, Ares Commercial Real Estate's highest Shiller PE Ratio was 13.65. The lowest was 5.96. And the median was 8.67.

FRA:41I's Shiller PE Ratio is ranked better than
84.23% of 444 companies
in the REITs industry
Industry Median: 11.48 vs FRA:41I: 6.31

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Ares Commercial Real Estate's adjusted earnings per share data for the three months ended in Mar. 2024 was €-0.212. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is €1.00 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Ares Commercial Real Estate Shiller PE Ratio Historical Data

The historical data trend for Ares Commercial Real Estate's Shiller PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ares Commercial Real Estate Shiller PE Ratio Chart

Ares Commercial Real Estate Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - 12.86 8.21 9.19

Ares Commercial Real Estate Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Shiller PE Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.23 8.28 7.80 9.19 6.76

Competitive Comparison of Ares Commercial Real Estate's Shiller PE Ratio

For the REIT - Mortgage subindustry, Ares Commercial Real Estate's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ares Commercial Real Estate's Shiller PE Ratio Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Ares Commercial Real Estate's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Ares Commercial Real Estate's Shiller PE Ratio falls into.



Ares Commercial Real Estate Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Ares Commercial Real Estate's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=6.375/1
=6.38

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Ares Commercial Real Estate's E10 for the quarter that ended in Mar. 2024 is calculated as:

For example, Ares Commercial Real Estate's adjusted earnings per share data for the three months ended in Mar. 2024 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=-0.212/131.7762*131.7762
=-0.212

Current CPI (Mar. 2024) = 131.7762.

Ares Commercial Real Estate Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201406 0.169 100.560 0.221
201409 0.109 100.428 0.143
201412 0.251 99.070 0.334
201503 0.231 99.621 0.306
201506 0.276 100.684 0.361
201509 0.294 100.392 0.386
201512 0.285 99.792 0.376
201603 0.162 100.470 0.212
201606 0.276 101.688 0.358
201609 0.579 101.861 0.749
201612 0.265 101.863 0.343
201703 0.215 102.862 0.275
201706 0.214 103.349 0.273
201709 0.327 104.136 0.414
201712 0.186 104.011 0.236
201803 0.268 105.290 0.335
201806 0.282 106.317 0.350
201809 0.300 106.507 0.371
201812 0.308 105.998 0.383
201903 0.266 107.251 0.327
201906 0.301 108.070 0.367
201909 0.281 108.329 0.342
201912 0.297 108.420 0.361
202003 -0.489 108.902 -0.592
202006 0.258 108.767 0.313
202009 0.374 109.815 0.449
202012 0.353 109.897 0.423
202103 0.378 111.754 0.446
202106 0.357 114.631 0.410
202109 0.179 115.734 0.204
202112 0.319 117.630 0.357
202203 0.309 121.301 0.336
202206 0.189 125.017 0.199
202209 0.010 125.227 0.011
202212 0.047 125.222 0.049
202303 -0.112 127.348 -0.116
202306 -0.037 128.729 -0.038
202309 0.159 129.860 0.161
202312 -0.669 129.419 -0.681
202403 -0.212 131.776 -0.212

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Ares Commercial Real Estate  (FRA:41I) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Ares Commercial Real Estate Shiller PE Ratio Related Terms

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Ares Commercial Real Estate (FRA:41I) Business Description

Traded in Other Exchanges
Address
245 Park Avenue, 42nd Floor, New York, NY, USA, 10167
Ares Commercial Real Estate Corp is a specialty finance company and a Real Estate Investment Trust providing commercial real estate loans and related investments. The company operates in one segment namely originating and managing a diversified portfolio of CRE debt-related investments. The group recognizes its revenues through the interest income it receives from loans.

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