Encore Capital Group, Inc. (ECPG) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+24.9%

$125.23

vs $100.23 price

Levered DCF

-$18.21

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

2.33

Grey zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	4.92×	-8.19×	-5.82×	5.95×	5.34×	5.78×	6.57×	5.75×
P/B	1.29×	1.49×	1.28×	0.98×	1.58×	1.01×	1.08×	0.81×
P/S	0.72×	0.87×	0.98×	0.83×	1.16×	0.82×	0.79×	0.49×
EV / EBITDA	8.03×	26.51×	68.84×	7.66×	7.13×	8.07×	9.62×	9.19×
Gross margin	69.0%	45.9%	46.7%	55.0%	57.5%	55.6%	54.0%	54.3%
Operating margin	35.4%	12.0%	1.4%	33.1%	39.2%	35.5%	31.9%	29.8%
Net margin	14.6%	-10.6%	-16.9%	13.9%	21.7%	14.1%	12.0%	8.5%
Current ratio	595.09×	1.18×	0.95×	0.78×	0.35×	0.33×	0.2×	0.55×
Debt / equity	4.23×	4.79×	3.54×	2.46×	2.53×	2.7×	3.44×	4.27×
Interest coverage	2.17×	0.62×	0.08×	3.01×	3.73×	2.55×	2.05×	1.71×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	26.3%	-18.1%	-22.0%	16.5%	29.6%	17.4%	16.4%	14.2%
Return on invested capital	8.9%	3.5%	0.4%	6.7%	11.6%	8.6%	8.0%	6.4%
Return on assets	4.8%	-2.9%	-4.5%	4.3%	7.6%	4.4%	3.4%	2.5%
Free cash flow yield	10.1%	11.1%	8.4%	11.6%	14.4%	22.7%	18.6%	17.9%
Earnings yield	20.3%	-12.2%	-17.2%	16.8%	18.7%	17.3%	15.2%	17.4%
Enterprise value	$5.2B	$4.6B	$4.4B	$3.9B	$4.7B	$4.3B	$4.4B	$4B
Net debt / EBITDA	6.09×	19.96×	49.88×	5.39×	4.28×	5.78×	7.22×	7.66×
Cash conversion cycle (days)	7	-100	-95	4	5	6	-115	-223