What is Encore Capital Group Inc worth?
With the base-case assumptions below, a discounted cash flow model on Encore Capital Group Inc's reported free cash flow gives -$79.59 per share. The share price was $98.41 on September 25, 2026, 224% below that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | -1.5% | 10.0% | -$113.08 | -215% |
| Base | 3.5% | 9.0% | -$79.59 | -181% |
| Bull | 8.5% | 8.0% | -$12.82 | -113% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | -$55.32 | -$47.98 | -$39.00 | -$27.78 | -$13.36 |
| 8.0% | -$73.38 | -$68.62 | -$62.99 | -$56.24 | -$47.98 |
| 9.0% | -$86.60 | -$83.34 | -$79.59 | -$75.20 | -$70.02 |
| 10.0% | -$96.69 | -$94.37 | -$91.75 | -$88.75 | -$85.29 |
| 11.0% | -$104.64 | -$102.94 | -$101.04 | -$98.91 | -$96.49 |
Where the presets come from
Base: years 1 to 5 grow at Encore Capital Group Inc's revenue growth rate over the last 5 fiscal years (3.3% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions