ECPG PE Ratio & Valuation,Is ECPG Overvalued

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 5.71 is considered Undervalued compared with the five-year average of 6.86. The fair price of Encore Capital Group Inc (ECPG) is between 55.37 to 86.32 according to relative valuation methord. Compared to the current price of 53.71 USD , Encore Capital Group Inc is Undervalued By 3.01%.

Relative Value

Fair Zone

55.37-86.32

Current Price：53.71

3.01%

Undervalued

5.71

8.29

EV/EBITDA

Encore Capital Group Inc. (ECPG) has a current EV/EBITDA of 8.29. The 5-year average EV/EBITDA is 8.69. The thresholds are as follows: Strongly Undervalued below 6.92, Undervalued between 6.92 and 7.80, Fairly Valued between 9.57 and 7.80, Overvalued between 9.57 and 10.46, and Strongly Overvalued above 10.46. The current Forward EV/EBITDA of 8.29 falls within the Historic Trend Line -Fairly Valued range.

8.97

EV/EBIT

Encore Capital Group Inc. (ECPG) has a current EV/EBIT of 8.97. The 5-year average EV/EBIT is 9.43. The thresholds are as follows: Strongly Undervalued below 7.26, Undervalued between 7.26 and 8.34, Fairly Valued between 10.51 and 8.34, Overvalued between 10.51 and 11.60, and Strongly Overvalued above 11.60. The current Forward EV/EBIT of 8.97 falls within the Historic Trend Line -Fairly Valued range.

0.69

Encore Capital Group Inc. (ECPG) has a current PS of 0.69. The 5-year average PS is 0.83. The thresholds are as follows: Strongly Undervalued below 0.46, Undervalued between 0.46 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 0.69 falls within the Historic Trend Line -Fairly Valued range.

7.14

P/OCF

Encore Capital Group Inc. (ECPG) has a current P/OCF of 7.14. The 5-year average P/OCF is 5.89. The thresholds are as follows: Strongly Undervalued below 3.93, Undervalued between 3.93 and 4.91, Fairly Valued between 6.87 and 4.91, Overvalued between 6.87 and 7.86, and Strongly Overvalued above 7.86. The current Forward P/OCF of 7.14 falls within the Overvalued range.

-9.14

P/FCF

Encore Capital Group Inc. (ECPG) has a current P/FCF of -9.14. The 5-year average P/FCF is -0.57. The thresholds are as follows: Strongly Undervalued below -17.11, Undervalued between -17.11 and -8.84, Fairly Valued between 7.70 and -8.84, Overvalued between 7.70 and 15.97, and Strongly Overvalued above 15.97. The current Forward P/FCF of -9.14 falls within the Undervalued range.

Encore Capital Group Inc (ECPG) has a current Price-to-Book (P/B) ratio of 1.29. Compared to its 3-year average P/B ratio of 1.06 , the current P/B ratio is approximately 21.50% higher. Relative to its 5-year average P/B ratio of 1.08, the current P/B ratio is about 19.54% higher. Encore Capital Group Inc (ECPG) has a Forward Free Cash Flow (FCF) yield of approximately 11.00%. Compared to its 3-year average FCF yield of 11.41%, the current FCF yield is approximately -3.56% lower. Relative to its 5-year average FCF yield of 13.58% , the current FCF yield is about -18.97% lower.

1.29

P/B

Median3y

1.06

Median5y

1.08

11.00

FCF Yield

Median3y

11.41

Median5y

13.58

Competitors Valuation Multiple

The average P/S ratio for ECPG's competitors is 0.85, providing a benchmark for relative valuation. Encore Capital Group Inc Corp (ECPG) exhibits a P/S ratio of 0.69, which is -18.76% above the industry average. Given its robust revenue growth of 27.84%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of ECPG increased by 12.43% 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.

27.84%

292.36M → 373.74M

Revenue Growth

90.65%

10.48 → 19.98

Margin Expansion

-106.06%

463.04 → -28.06

P/E Change

12.43%

47.77 → 53.71

Mkt Cap Growth

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Frequently Asked Questions

Is Encore Capital Group Inc (ECPG) currently overvalued or undervalued?

What is Encore Capital Group Inc (ECPG) fair value?

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. The fair price of Encore Capital Group Inc (ECPG) is between 55.37 to 86.32 according to relative valuation methord.

How does ECPG's valuation metrics compare to the industry average?

What is the current P/B ratio for Encore Capital Group Inc (ECPG) as of Dec 15 2025?

As of Dec 15 2025, Encore Capital Group Inc (ECPG) has a P/B ratio of 1.29. This indicates that the market values ECPG at 1.29 times its book value.

What is the current FCF Yield for Encore Capital Group Inc (ECPG) as of Dec 15 2025?

As of Dec 15 2025, Encore Capital Group Inc (ECPG) has a FCF Yield of 11.00%. This means that for every dollar of Encore Capital Group Inc’s market capitalization, the company generates 11.00 cents in free cash flow.

What is the current Forward P/E ratio for Encore Capital Group Inc (ECPG) as of Dec 15 2025?

As of Dec 15 2025, Encore Capital Group Inc (ECPG) has a Forward P/E ratio of 5.71. This means the market is willing to pay $5.71 for every dollar of Encore Capital Group Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Encore Capital Group Inc (ECPG) as of Dec 15 2025?

As of Dec 15 2025, Encore Capital Group Inc (ECPG) has a Forward P/S ratio of 0.69. This means the market is valuing ECPG at $0.69 for every dollar of expected revenue over the next 12 months.

ECPG Valuation