ECPG Valuation

Encore Capital Group Inc

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43.250

+1.67(4.016%)1D

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 5.27 is considered Undervalued compared with the five-year average of 6.86. The fair price of Encore Capital Group Inc (ECPG) is between 65.85 to 91.90 according to relative valuation methord. Compared to the current price of 41.58 USD , Encore Capital Group Inc is Undervalued By 36.85%.

Relative Value

Fair Zone

65.85-91.90

Current Price：41.58

36.85%

Undervalued

5.27

Trailing

Forward

9.08

EV/EBITDA

Encore Capital Group Inc. (ECPG) has a current EV/EBITDA of 9.08. The 5-year average EV/EBITDA is 8.68. The thresholds are as follows: Strongly Undervalued below 6.84, Undervalued between 6.84 and 7.76, Fairly Valued between 9.60 and 7.76, Overvalued between 9.60 and 10.52, and Strongly Overvalued above 10.52. The current Forward EV/EBITDA of 9.08 falls within the Historic Trend Line -Fairly Valued range.

9.28

EV/EBIT

Encore Capital Group Inc. (ECPG) has a current EV/EBIT of 9.28. The 5-year average EV/EBIT is 9.41. The thresholds are as follows: Strongly Undervalued below 7.17, Undervalued between 7.17 and 8.29, Fairly Valued between 10.54 and 8.29, Overvalued between 10.54 and 11.66, and Strongly Overvalued above 11.66. The current Forward EV/EBIT of 9.28 falls within the Historic Trend Line -Fairly Valued range.

41.58

Encore Capital Group Inc. (ECPG) has a current PS of 41.58. The 5-year average PS is 1.00. The thresholds are as follows: Strongly Undervalued below -4.27, Undervalued between -4.27 and -1.64, Fairly Valued between 3.64 and -1.64, Overvalued between 3.64 and 6.27, and Strongly Overvalued above 6.27. The current Forward PS of 41.58 falls within the Strongly Overvalued range.

5.64

P/OCF

Encore Capital Group Inc. (ECPG) has a current P/OCF of 5.64. The 5-year average P/OCF is 5.82. The thresholds are as follows: Strongly Undervalued below 3.72, Undervalued between 3.72 and 4.77, Fairly Valued between 6.87 and 4.77, Overvalued between 6.87 and 7.92, and Strongly Overvalued above 7.92. The current Forward P/OCF of 5.64 falls within the Historic Trend Line -Fairly Valued range.

-8.69

P/FCF

Encore Capital Group Inc. (ECPG) has a current P/FCF of -8.69. The 5-year average P/FCF is -0.21. The thresholds are as follows: Strongly Undervalued below -16.64, Undervalued between -16.64 and -8.43, Fairly Valued between 8.00 and -8.43, Overvalued between 8.00 and 16.22, and Strongly Overvalued above 16.22. The current Forward P/FCF of -8.69 falls within the Undervalued range.

Encore Capital Group Inc (ECPG) has a current Price-to-Book (P/B) ratio of 1.07. Compared to its 3-year average P/B ratio of 1.05 , the current P/B ratio is approximately 1.78% higher. Relative to its 5-year average P/B ratio of 1.07, the current P/B ratio is about -0.10% higher. Encore Capital Group Inc (ECPG) has a Forward Free Cash Flow (FCF) yield of approximately 10.03%. Compared to its 3-year average FCF yield of 11.39%, the current FCF yield is approximately -11.91% lower. Relative to its 5-year average FCF yield of 13.80% , the current FCF yield is about -27.30% lower.

1.07

P/B

Median3y

1.05

Median5y

1.07

10.03

FCF Yield

Median3y

11.39

Median5y

13.80

Competitors Valuation Multiple

The average P/S ratio for ECPG's competitors is 50.31, providing a benchmark for relative valuation. Encore Capital Group Inc Corp (ECPG) exhibits a P/S ratio of 41.58, which is -17.35% above the industry average. Given its robust revenue growth of 24.89%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

ECPG.O

Encore Capital Group Inc

Willis Lease Finance Corp

Atlanticus Holdings Corp

55.11

40.39%

851.87M

Performance Decomposition

Market capitalization of ECPG decreased by 12.08% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 11.35 to 16.58.

The secondary factor is the Revenue Growth, contributed 24.89%to the performance.

Overall, the performance of ECPG in the past 1 year is driven by Margin Expansion. Which is more sustainable.

24.89%

283.53M → 354.10M

Revenue Growth

46.08%

11.35 → 16.58

Margin Expansion

-83.05%

-65.50 → -11.10

P/E Change

-12.08%