Latest Ratios: P/E Ratio 8.3x · EV/EBITDA 9.1x · ROE 29.5%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.9B | $1.3B | $1.1B | $1.2B | $1.3B | $1.9B | $1.2B | $1.1B | $671M | $1.1B | $742M |
| Enterprise Value | $5.9B | $5.3B | $4.6B | $4.4B | $4.0B | $4.7B | $4.3B | $4.4B | $4.0B | $4.3B | $3.4B |
| P/E Ratio → | 8.26 | 4.98 | — | — | 6.43 | 5.52 | 5.83 | 6.63 | 5.79 | 13.37 | 9.68 |
| P/S Ratio | 1.10 | 0.73 | 0.87 | 0.98 | 0.89 | 1.20 | 0.82 | 0.80 | 0.49 | 0.94 | 0.72 |
| P/B Ratio | 2.17 | 1.31 | 1.49 | 1.28 | 1.06 | 1.63 | 1.01 | 1.09 | 0.82 | 1.54 | 1.24 |
| P/FCF | 15.21 | 10.08 | 8.97 | 11.86 | 9.33 | 7.17 | 4.44 | 5.43 | 5.63 | 11.62 | 7.52 |
| P/OCF | 12.60 | 8.35 | 7.30 | 7.85 | 5.94 | 6.38 | 3.95 | 4.55 | 3.59 | 8.98 | 5.70 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.98 | 3.50 | 3.57 | 2.86 | 2.94 | 2.88 | 3.17 | 2.94 | 3.66 | 3.30 |
| EV / EBITDA | 9.05 | 8.05 | 24.31 | 74.84 | 7.88 | 6.94 | 7.51 | 9.10 | 8.97 | 11.92 | 12.30 |
| EV / EBIT | 9.47 | 8.42 | 32.59 | 201.77 | 8.63 | 7.82 | 8.79 | 10.58 | 10.17 | 12.96 | 13.98 |
| EV / FCF | — | 41.40 | 36.28 | 43.06 | 29.87 | 17.59 | 15.55 | 21.61 | 33.56 | 45.42 | 34.45 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 69.0% | 69.0% | 45.9% | 46.7% | 55.0% | 57.5% | 55.6% | 54.0% | 54.3% | 52.9% | 49.7% |
| Operating Margin | 35.4% | 35.4% | 12.0% | 1.4% | 33.1% | 39.2% | 35.5% | 31.9% | 29.8% | 27.3% | 23.5% |
| Net Profit Margin | 14.6% | 14.6% | -10.6% | -16.9% | 13.9% | 21.7% | 14.1% | 12.0% | 8.5% | 7.0% | 7.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 29.5% | 29.5% | -16.3% | -19.5% | 16.5% | 29.2% | 18.9% | 18.2% | 15.0% | 12.6% | 12.3% |
| ROA | 5.1% | 5.1% | -3.0% | -4.5% | 4.3% | 7.4% | 4.3% | 3.5% | 2.5% | 2.0% | 1.9% |
| ROIC | 9.8% | 9.8% | 2.7% | 0.3% | 8.4% | 10.9% | 8.9% | 7.6% | 7.2% | 6.4% | 5.0% |
| ROCE | 12.6% | 12.6% | 3.5% | 0.4% | 11.4% | 16.1% | 14.0% | 11.2% | 9.5% | 8.5% | 6.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 4.23 | 4.23 | 4.79 | 3.54 | 2.46 | 2.53 | 2.69 | 3.43 | 4.26 | 4.76 | 4.67 |
| Debt / EBITDA | 6.33 | 6.33 | 19.35 | 56.94 | 5.70 | 4.39 | 5.69 | 7.21 | 7.82 | 9.46 | 10.15 |
| Net Debt / Equity | — | 4.07 | 4.53 | 3.37 | 2.34 | 2.37 | 2.53 | 3.24 | 4.07 | 4.47 | 4.42 |
| Net Debt / EBITDA | 6.09 | 6.09 | 18.30 | 54.22 | 5.42 | 4.11 | 5.37 | 6.81 | 7.46 | 8.87 | 9.61 |
| Debt / FCF | — | 31.32 | 27.31 | 31.20 | 20.54 | 10.41 | 11.11 | 16.19 | 27.94 | 33.80 | 26.92 |
| Interest Coverage | 2.17 | 2.17 | 0.56 | 0.11 | 3.03 | 3.57 | 2.35 | 1.92 | 1.66 | 1.64 | 1.31 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 595.09 | 595.09 | 1.05 | 0.95 | 0.78 | 0.35 | 0.33 | 0.20 | 0.55 | 0.74 | 0.64 |
| Quick Ratio | 595.09 | 595.09 | 1.05 | 0.95 | 0.78 | 0.35 | 0.33 | 0.20 | 0.55 | 0.74 | 0.64 |
| Cash Ratio | 488.42 | 488.42 | 0.86 | 0.72 | 0.54 | 0.26 | 0.22 | 0.15 | 0.55 | 0.74 | 0.64 |
| Asset Turnover | — | 0.33 | 0.27 | 0.26 | 0.31 | 0.35 | 0.31 | 0.28 | 0.29 | 0.26 | 0.28 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 12.1% | 20.1% | — | — | 15.6% | 18.1% | 17.2% | 15.1% | 17.3% | 7.5% | 10.3% |
| FCF Yield | 6.6% | 9.9% | 11.2% | 8.4% | 10.7% | 13.9% | 22.5% | 18.4% | 17.8% | 8.6% | 13.3% |
| Buyback Yield | 4.7% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 4.7% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $24M | $24M | $24M | $26M | $31M | $32M | $31M | $29M | $26M | $26M |
High leverage and liquidity
With a TTM P/E of 8.31 and a forward P/E of 7.00, ECPG trades at a significant discount to broader financial services, suggesting that market participants remain skeptical of the company's ability to sustain earnings growth amidst potential regulatory headwinds and volatile portfolio recovery cycles.
The current valuation multiples appear to price in a high degree of risk regarding the durability of future cash flows from purchased debt. Investors should monitor whether the forward P/E compression indicates an expectation of earnings degradation or simply a market mispricing of the company's counter-cyclical inventory acquisition model.
As reported in recent financial statements, ECPG's ROIC has struggled to gain traction, hovering between 1.5% and 4.5% over the last ten quarters, which suggests that the company's heavy reliance on debt financing significantly dilutes the returns generated from its core debt-buying operations.
The persistent gap between ROIC and the cost of capital warrants further investigation, as it implies that the company may be overpaying for portfolio acquisitions relative to the actual cash yield realized. This trend suggests that management's capital allocation strategy is currently failing to compound shareholder value effectively.
Based on quarterly data, the company's asset turnover remains consistently low at approximately 0.09, reflecting the capital-intensive nature of the business and the long-duration recovery cycles inherent in managing non-performing loan portfolios across diverse geographic markets.
The extreme fluctuations in DSO, which spiked to 425 in 2026Q1, indicate significant friction in the cash conversion cycle that may not be fully captured by standard efficiency metrics. This suggests that operational bottlenecks in the legal collection process could be creating hidden drag on liquidity.
According to recent SEC filings, ECPG maintains a D/E ratio consistently above 4.0, a level that appears elevated compared to peers and leaves the company with limited room for error should interest rates remain higher for longer or portfolio performance deteriorate.
The interest coverage ratio, which has fluctuated between 1.58 and 2.58, suggests that debt service is becoming increasingly sensitive to operational cash flow volatility. Investors should monitor the maturity ladder closely, as any disruption in refinancing access could pose a material threat to the company's solvency.
The P/E ratio is frequently misapplied to ECPG because it fails to account for the non-cash impairment charges and yield adjustments inherent in the effective interest method of accounting, which can artificially depress reported earnings and obscure the underlying cash-generating capacity of the business.
Analysts should instead focus on the ratio of cash collections to portfolio purchase price, as this provides a more accurate view of operational success than GAAP net income. Relying on P/E ignores the 'annuity-like' nature of the debt portfolios and the significant timing differences between revenue recognition and actual cash inflows.
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying ECPG stock.
Encore Capital Group, Inc.'s current P/E ratio is 8.3x. The historical average is 11.1x. This places it at the 32th percentile of its historical range.
Encore Capital Group, Inc.'s current EV/EBITDA is 9.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.9x.
Encore Capital Group, Inc.'s return on equity (ROE) is 29.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 6.3%.
Based on historical data, Encore Capital Group, Inc. is trading at a P/E of 8.3x. This is at the 32th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Encore Capital Group, Inc. has 69.0% gross margin and 35.4% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Encore Capital Group, Inc.'s Debt/EBITDA ratio is 6.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.