Is The Carlyle Group Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for The Carlyle Group Inc. has moved from expensive to attractive, indicating a shift in perception regarding its value. The company appears undervalued based on its current metrics, with a P/E ratio of 15, a PEG ratio of 0.06, and an EV to EBITDA ratio of 8.54. In comparison to peers, Ares Management Corp. has a significantly higher P/E ratio of 111.58, while T. Rowe Price Group, Inc. shows a more favorable P/E of 12.03, reinforcing Carlyle's relative attractiveness.
The Carlyle Group has demonstrated strong performance, with a year-to-date return of 37.35%, significantly outpacing the S&P 500's return of 12.22% during the same period. This performance, coupled with its attractive valuation ratios, suggests that the market may be underestimating the company's potential.