Encore Capital Valuation
| ECPG Stock | USD 34.79 0.28 0.81% |
At this time, the firm appears to be overvalued. Encore Capital Group shows a prevailing Real Value of $26.44 per share. The current price of the firm is $34.79. Our model computes the value of Encore Capital Group from reviewing the firm fundamentals such as Profit Margin of (0.11) %, operating margin of (0.06) %, and Current Valuation of 4.3 B as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Encore Capital's valuation include:
Price Book 1.0741 | Enterprise Value | Enterprise Value Ebitda 22.7645 | Price Sales 0.6261 | Forward PE 5.5432 |
Overvalued
Today
Please note that Encore Capital's price fluctuation is not too volatile at this time. Calculation of the real value of Encore Capital Group is based on 3 months time horizon. Increasing Encore Capital's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Encore stock is determined by what a typical buyer is willing to pay for full or partial control of Encore Capital Group. Since Encore Capital is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Encore Stock. However, Encore Capital's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 34.79 | Real 26.44 | Target 64.25 | Hype 34.79 | Naive 40.48 |
The real value of Encore Stock, also known as its intrinsic value, is the underlying worth of Encore Capital Group Company, which is reflected in its stock price. It is based on Encore Capital's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Encore Capital's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Encore Capital Group helps investors to forecast how Encore stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Encore Capital more accurately as focusing exclusively on Encore Capital's fundamentals will not take into account other important factors: When choosing an evaluation method for Encore Capital Group, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using all methods to arrive at a better estimate.
Encore Capital Cash |
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Encore Valuation Trend
Comparing Encore Capital's enterprise value against its market capitalization is a good way to estimate the value of Encore Capital Group uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
Encore Capital Total Value Analysis
Encore Capital Group is currently projected to have valuation of 4.3 B with market capitalization of 824.22 M, debt of 3.67 B, and cash on hands of 172.95 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Encore Capital fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
4.3 B | 824.22 M | 3.67 B | 172.95 M |
Encore Capital Investor Information
About 97.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.07. Some equities with similar Price to Book (P/B) outperform the market in the long run. Encore Capital Group has Price/Earnings To Growth (PEG) ratio of 0.17. The entity recorded a loss per share of 5.83. The firm had not issued any dividends in recent years. Encore Capital Group is not in a good financial situation at the present time. It has a very high chance of going through financial crunch in April.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.18 | 0.1195 |
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| Total Cash From Operating Activities | 109.8 M | 156.2 M |
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| Operating Income | 195.9 M | 157.3 M |
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Encore Capital Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Encore Capital has an asset utilization ratio of 27.48 percent. This implies that the Company is making $0.27 for each dollar of assets. An increasing asset utilization means that Encore Capital Group is more efficient with each dollar of assets it utilizes for everyday operations.Encore Capital Ownership Allocation
The majority of Encore Capital Group outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Encore Capital Group to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Encore Capital. Please pay attention to any change in the institutional holdings of Encore Capital Group as this could imply that something significant has changed or is about to change at the company. On July 10, 2018, Representative Lamar Smith of US Congress acquired under $15k worth of Encore Capital Group's common stock.Encore Capital Profitability Analysis
The company reported the previous year's revenue of 1.32 B. Net Loss for the year was (139.24 M) with profit before overhead, payroll, taxes, and interest of 1.32 B.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Encore Capital's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Encore Capital and how it compares across the competition.
About Encore Capital Valuation
The stock valuation mechanism determines Encore Capital's current worth on a weekly basis. Our valuation model uses a comparative analysis of Encore Capital. We calculate exposure to Encore Capital's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Encore Capital's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 893.5 M | 938.1 M | |
| Pretax Profit Margin | (0.07) | (0.07) | |
| Operating Profit Margin | 0.12 | 0.18 | |
| Net Loss | (0.11) | (0.10) | |
| Gross Profit Margin | 0.68 | 0.70 |
Encore Capital Growth Indicators
Investing in growth stocks can be very risky. If the company such as Encore Capital does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 23.9 M | |
| Quarterly Earnings Growth Y O Y | 0.595 | |
| Forward Price Earnings | 5.5432 |
Encore Capital Current Valuation Indicators
Valuation refers to the process of determining the present value of Encore Capital Group and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Encore we look at many different elements of the entity such as Encore's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Encore Capital, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Encore Capital's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Encore Capital's worth.Complementary Tools for Encore Stock analysis
When running Encore Capital's price analysis, check to measure Encore Capital's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Encore Capital is operating at the current time. Most of Encore Capital's value examination focuses on studying past and present price action to predict the probability of Encore Capital's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Encore Capital's price. Additionally, you may evaluate how the addition of Encore Capital to your portfolios can decrease your overall portfolio volatility.
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