ECPG Relative Valuation
ECPG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ECPG is overvalued; if below, it's undervalued.
Historical Valuation
Encore Capital Group Inc (ECPG) is now in the Undervalued zone, suggesting that its current forward PE ratio of 5.56 is considered Undervalued compared with the five-year average of 6.85. The fair price of Encore Capital Group Inc (ECPG) is between 54.67 to 85.66 according to relative valuation methord. Compared to the current price of 52.26 USD , Encore Capital Group Inc is Undervalued By 4.41%.
Relative Value
Fair Zone
54.67-85.66
Current Price：52.26
4.41%
Undervalued
5.64
PE
1Y
3Y
5Y
Trailing
Forward
8.23
EV/EBITDA
Encore Capital Group Inc. (ECPG) has a current EV/EBITDA of 8.23. The 5-year average EV/EBITDA is 8.68. The thresholds are as follows: Strongly Undervalued below 6.90, Undervalued between 6.90 and 7.79, Fairly Valued between 9.57 and 7.79, Overvalued between 9.57 and 10.47, and Strongly Overvalued above 10.47. The current Forward EV/EBITDA of 8.23 falls within the Historic Trend Line -Fairly Valued range.
8.91
EV/EBIT
Encore Capital Group Inc. (ECPG) has a current EV/EBIT of 8.91. The 5-year average EV/EBIT is 9.42. The thresholds are as follows: Strongly Undervalued below 7.24, Undervalued between 7.24 and 8.33, Fairly Valued between 10.52 and 8.33, Overvalued between 10.52 and 11.61, and Strongly Overvalued above 11.61. The current Forward EV/EBIT of 8.91 falls within the Historic Trend Line -Fairly Valued range.
0.67
PS
Encore Capital Group Inc. (ECPG) has a current PS of 0.67. The 5-year average PS is 0.83. The thresholds are as follows: Strongly Undervalued below 0.47, Undervalued between 0.47 and 0.65, Fairly Valued between 1.01 and 0.65, Overvalued between 1.01 and 1.19, and Strongly Overvalued above 1.19. The current Forward PS of 0.67 falls within the Historic Trend Line -Fairly Valued range.
6.95
P/OCF
Encore Capital Group Inc. (ECPG) has a current P/OCF of 6.95. The 5-year average P/OCF is 5.87. The thresholds are as follows: Strongly Undervalued below 3.90, Undervalued between 3.90 and 4.89, Fairly Valued between 6.86 and 4.89, Overvalued between 6.86 and 7.85, and Strongly Overvalued above 7.85. The current Forward P/OCF of 6.95 falls within the Overvalued range.
-8.89
P/FCF
Encore Capital Group Inc. (ECPG) has a current P/FCF of -8.89. The 5-year average P/FCF is -0.50. The thresholds are as follows: Strongly Undervalued below -17.01, Undervalued between -17.01 and -8.75, Fairly Valued between 7.75 and -8.75, Overvalued between 7.75 and 16.00, and Strongly Overvalued above 16.00. The current Forward P/FCF of -8.89 falls within the Undervalued range.
Encore Capital Group Inc (ECPG) has a current Price-to-Book (P/B) ratio of 1.25. Compared to its 3-year average P/B ratio of 1.06 , the current P/B ratio is approximately 18.61% higher. Relative to its 5-year average P/B ratio of 1.08, the current P/B ratio is about 16.49% higher. Encore Capital Group Inc (ECPG) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 11.45%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 13.64% , the current FCF yield is about -100.00% lower.
1.27
P/B
Median3y
1.06
Median5y
1.08
11.31
FCF Yield
Median3y
11.45
Median5y
13.64
Competitors Valuation Multiple
The average P/S ratio for ECPG's competitors is , providing a benchmark for relative valuation. Encore Capital Group Inc Corp (ECPG) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 27.84%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ECPG increased by 11.07% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 10.48 to 19.98.
The secondary factor is the Revenue Growth, contributed 27.84%to the performance.
Overall, the performance of ECPG in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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