Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Encore Capital GroupFRA:ECP +1.29%69 Debt-to-EBITDA is 5.33 as of Mar. 2026, which is 32% below its 10-year median of 7.83. GuruFocus rates FRA:ECP with a GF Score™ of 69/100 and a GF Value™ of €62.26 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 282 Credit Services companies, Encore Capital Group ranks better than 61.7% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Encore Capital Group's Debt-to-EBITDA or its related term are showing as below:
FRA:ECP'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 4.57 Med: 7.83 Max: 52.38
Current: 5.77
During the past 13 years, the highest Debt-to-EBITDA Ratio of Encore Capital Group was 52.38. The lowest was 4.57. And the median was 7.83.
FRA:ECP's Debt-to-EBITDA is ranked better than 61.7% of 282
companies
in the Credit Services industry
Industry Median: 9.3
vs FRA:ECP: 5.77
Encore Capital Group (FRA:ECP) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Encore Capital Group Debt-to-EBITDA Related Terms
Encore Capital Group Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Encore Capital Group's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:ECP vs QFIN, EZPW, AGM.A: Debt-to-EBITDA Comparison
For the Credit Services subindustry, Encore Capital Group's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Encore Capital Group Debt-to-EBITDA vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Encore Capital Group's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Encore Capital Group's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Encore Capital Group (FRA:ECP) has a Debt-to-EBITDA of 5.33 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Encore Capital Group. This is 32% below median its historical median of 7.83. Over the past decade, Encore Capital Group's Debt-to-EBITDA has ranged from 4.57 to 52.38. According to the industry distribution chart, Encore Capital Group ranks #108 out of 282 companies in the Credit Services industry, placing it in the top 38.3%.
Is Encore Capital Group's Debt-to-EBITDA too high?
Encore Capital Group's current Debt-to-EBITDA of 5.33 is 32% below median its 10-year median of 7.83. Over the past 10 years, this metric has ranged from a low of 4.57 to a high of 52.38. The Credit Services industry median Debt-to-EBITDA is 9.30. Encore Capital Group's value of 5.33 is 42.7% below this industry median. Based on the distribution chart, Encore Capital Group ranks #108 out of 282 companies in the Credit Services industry, which is above the industry midpoint. Overall, Encore Capital Group has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Encore Capital Group's Debt-to-EBITDA compare to QFIN and EZPW?
According to the Credit Services industry distribution chart, Encore Capital Group ranks #108 out of 282 companies for Debt-to-EBITDA. This puts Encore Capital Group in the upper half of its industry. The industry median Debt-to-EBITDA is 9.30. Encore Capital Group's value of 5.33 is 42.7% below this benchmark. Historically, Encore Capital Group's own Debt-to-EBITDA has ranged from 4.57 to 52.38 over the past decade. While the company's 10-year median is 7.83 vs. the industry median of 9.30, Encore Capital Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Credit Services company?
The median Debt-to-EBITDA among Credit Services companies is 9.30, based on 282 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encore Capital Group's current Debt-to-EBITDA of 5.33 is 42.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Encore Capital Group. For the Credit Services industry, the median Debt-to-EBITDA is 9.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encore Capital Group's current Debt-to-EBITDA is 5.33, which is 32% below median its own 10-year median of 7.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Encore Capital Group stock overvalued right now?
Based on GuruFocus' analysis, Encore Capital Group (FRA:ECP) is currently considered Modestly Overvalued. The stock's GF Value™ is €62.26, compared to a current price of €78.50 — trading 26.1% above its estimated fair value. The current Debt-to-EBITDA is 5.33, which is 32% below median its 10-year median of 7.83 and 42.7% below the Credit Services industry median of 9.30. Encore Capital Group's overall GF Score™ is 69/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Encore Capital Group (FRA:ECP), the current Debt-to-EBITDA is 5.33 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Encore Capital Group (FRA:ECP) Overvalued in 2026?
Based on GuruFocus' analysis, Encore Capital Group stock appears to be overvalued.
The current stock price of €78.50 is trading 26.1% above its estimated GF Value™ of €62.26.
GuruFocus considers Encore Capital Group to be Modestly Overvalued.
Key valuation signals for FRA:ECP:
Debt-to-EBITDA: 5.33 (32% below median its 10-year median of 7.83)
GF Value™: €62.26 vs. price of €78.50 (26.1% above fair value)
Industry Position: 42.7% below the Credit Services median (#108 of 282)
No single metric tells the full story. See the FRA:ECP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Encore Capital Group Inc is an international specialty finance company engaged in providing debt recovery solutions and other related services for consumers across a broad range of financial assets. It mainly purchases portfolios of defaulted consumer receivables at deep discounts to face value and manages them by working with individuals to repay their obligations and work toward financial recovery. The company also provides debt servicing and other portfolio management services to credit originators for non-performing loans in Europe. It has only one reportable segment, debt purchasing and recovery. Geographically, the company generates maximum revenue from its business in the United States, followed by the United Kingdom, Europe, and other regions.
69GF Score
Get the complete analysis for FRA:ECP
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:ECP has been successfully added to your 
