Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. PRA Group's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was $121 Mil. PRA Group's average total debt for the quarter that ended in Mar. 2026 was $3,770 Mil. Therefore, PRA Group's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 3.21%.
PRA Group (NAS:PRAA) Effective Interest Rate on Debt % Explanation
Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.
PRA Group Effective Interest Rate on Debt % Related Terms
PRA Group Effective Interest Rate on Debt % Historical Data
* Premium members only.
The historical data trend for PRA Group's Effective Interest Rate on Debt % 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.
PRAA vs GDOT, OPFI, NAVI: Effective Interest Rate on Debt % Comparison
For the Credit Services subindustry, PRA Group's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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.
PRA Group Effective Interest Rate on Debt % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, PRA Group's Effective Interest Rate on Debt % distribution charts can be found below:
* The bar in red indicates where PRA Group's Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data,
the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data.
Effective Interest Rate on Debt % is displayed in the 30-year financial page.
What does a Effective Interest Rate on Debt % of 3.21% mean?
PRA Group (PRAA) has a Effective Interest Rate on Debt % of 3.21% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on PRA Group and its competitors.
Is PRA Group's Effective Interest Rate on Debt % too high?
PRA Group's current Effective Interest Rate on Debt % is 3.21%. Overall, PRA Group has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does PRA Group's Effective Interest Rate on Debt % compare to GDOT and OPFI?
PRA Group's Effective Interest Rate on Debt % of 3.21% can be compared against companies in the Credit Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Credit Services company?
A good Effective Interest Rate on Debt % depends on the Credit Services industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on PRA Group and its competitors. PRA Group's current Effective Interest Rate on Debt % is 3.21%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PRA Group stock overvalued right now?
Based on GuruFocus' analysis, PRA Group (PRAA) is currently considered Possible Value Trap. The stock's GF Value™ is $26.18, compared to a current price of $18.28 — trading 30.2% below its estimated fair value. The current Effective Interest Rate on Debt % is 3.21%. PRA Group's overall GF Score™ is 63/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For PRA Group (PRAA), the current Effective Interest Rate on Debt % is 3.21% 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 PRA Group (PRAA) Overvalued in 2026?
Based on GuruFocus' analysis, PRA Group stock appears to be undervalued.
The current stock price of $18.28 is trading 30.2% below its estimated GF Value™ of $26.18.
GuruFocus considers PRA Group to be Possible Value Trap.
Key valuation signals for PRAA:
Effective Interest Rate on Debt %: 3.21%
GF Value™: $26.18 vs. price of $18.28 (30.2% below fair value)
No single metric tells the full story. See the PRAA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PRA Group Inc is a specialty finance company engaged in the purchase, collection, and management of nonperforming loan portfolios. The majority of the loans it purchases are from credit originators who have chosen not to pursue, or have been unsuccessful in collecting, the full balance owed to them (Core accounts). To a lesser extent, the company also purchases loans in situations where the customer is involved in a bankruptcy or similar proceeding (Insolvency accounts). As part of an ancillary business, it also purchases and provides fee-based services for class action claims recoveries in the U.S. The company has two operating and reportable segments, comprised of its U.S. and European businesses. The majority of its revenue is generated from the United States.
63GF Score
Get the complete analysis for PRAA
Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PRAA has been successfully added to your 
