PRA Group, Inc. (PRAA) 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

-152.2%

-$10.30

vs $19.74 price

Levered DCF

-$2.57

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

0.83

Distress zone

Rating

C+

Overall 2 / 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	-2.27×	11.67×	-12.3×	11.41×	12.34×	12.09×	19.11×	16.81×
P/B	0.71×	0.72×	0.88×	1.09×	1.75×	1.35×	1.41×	1.01×
P/S	0.56×	0.73×	1.26×	1.39×	2.06×	1.7×	1.66×	1.26×
EV / EBITDA	32.69×	19.51×	506.88×	28.59×	22.58×	26.47×	15.81×	14.93×
Gross margin	99.2%	61.0%	51.0%	56.9%	61.1%	59.0%	68.8%	63.6%
Operating margin	33.9%	30.2%	12.3%	29.6%	34.2%	32.8%	24.9%	21.1%
Net margin	-24.6%	6.3%	-10.2%	12.1%	16.7%	14.0%	8.7%	7.5%
Current ratio	1.68×	12.97×	14.19×	13.51×	12.91×	13.75×	1.84×	2.42×
Debt / equity	0.03×	2.96×	3.77×	2.94×	2.98×	3.2×	2.46×	2.26×
Interest coverage	1.67×	3.83×	1.34×	5.53×	9.62×	9.85×	1.72×	1.49×
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	-31.1%	6.2%	-7.2%	9.5%	14.2%	11.1%	7.4%	6.0%
Return on invested capital	181.0%	6.0%	1.4%	4.4%	5.6%	4.9%	4.9%	4.2%
Return on assets	-6.0%	1.4%	-1.8%	2.8%	4.2%	3.4%	1.9%	1.7%
Free cash flow yield	-13.0%	-12.0%	-9.8%	0.6%	3.3%	6.9%	7.0%	5.5%
Earnings yield	-44.0%	8.6%	-8.1%	8.7%	8.1%	8.3%	5.2%	5.9%
Enterprise value	$620.7M	$4.1B	$5.3B	$4.9B	$6B	$6B	$4.4B	$3.5B
Net debt / EBITDA	-3.8×	15.57×	409.02×	20.73×	14.09×	18.49×	9.9×	10.19×
Cash conversion cycle (days)	0	1,351	1,643	1,250	1,152	1,207	1,294	1,301