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 -$83.10 per share. The share price was $111.98 on November 9, 2026, 235% 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% | -$116.60 | -204% |
| Base | 3.5% | 9.0% | -$83.10 | -174% |
| Bull | 8.5% | 8.0% | -$16.34 | -115% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | -$58.84 | -$51.50 | -$42.52 | -$31.30 | -$16.88 |
| 8.0% | -$76.90 | -$72.14 | -$66.51 | -$59.75 | -$51.50 |
| 9.0% | -$90.12 | -$86.86 | -$83.10 | -$78.72 | -$73.54 |
| 10.0% | -$100.21 | -$97.89 | -$95.27 | -$92.27 | -$88.81 |
| 11.0% | -$108.16 | -$106.46 | -$104.56 | -$102.43 | -$100.01 |
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