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Encore Capital GroupFRA:ECP -1.90%67 EV-to-EBIT is 8.68 as of Jul. 22, 2026, which is 28% below its 10-year median of 12.06. GuruFocus rates FRA:ECP with a GF Score™ of 67/100 and a GF Value™ of €63.06 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 312 Credit Services companies, Encore Capital Group ranks better than 82.05% on this metric.
Encore Capital Group (FRA:ECP) EV-to-EBIT Explanation
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Encore Capital Group's Enterprise Value for the quarter that ended in Mar. 2026 was €4,582 Mil.
Encore Capital Group's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €577 Mil.
* 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.
Encore Capital Group EV-to-EBIT Related Terms
Encore Capital Group EV-to-EBIT Historical Data
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The historical data trend for Encore Capital Group's EV-to-EBIT 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: EV-to-EBIT Comparison
For the Credit Services subindustry, Encore Capital Group's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Encore Capital Group's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Encore Capital Group's EV-to-EBIT falls into.
Encore Capital Group's current Enterprise Value is €5,009 Mil.
Encore Capital Group's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €577 Mil.
* 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.
Encore Capital Group (FRA:ECP) has a EV-to-EBIT of 8.68 as of Jul. 22, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Encore Capital Group and its competitors. This is 28% below median its historical median of 12.06. Over the past decade, Encore Capital Group's EV-to-EBIT has ranged from 5.95 to 204.13. According to the industry distribution chart, Encore Capital Group ranks #56 out of 312 companies in the Credit Services industry, placing it in the top 17.9%.
Is Encore Capital Group's EV-to-EBIT too high?
Encore Capital Group's current EV-to-EBIT of 8.68 is 28% below median its 10-year median of 12.06. Over the past 10 years, this metric has ranged from a low of 5.95 to a high of 204.13. The Credit Services industry median EV-to-EBIT is 23.66. Encore Capital Group's value of 8.68 is 63.3% below this industry median. Based on the distribution chart, Encore Capital Group ranks #56 out of 312 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Encore Capital Group has a GF Score™ of 67/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Encore Capital Group's EV-to-EBIT compare to QFIN and EZPW?
According to the Credit Services industry distribution chart, Encore Capital Group ranks #56 out of 312 companies for EV-to-EBIT. This places Encore Capital Group in the top 18% of its industry — outperforming the majority of peers. The industry median EV-to-EBIT is 23.66. Encore Capital Group's value of 8.68 is 63.3% below this benchmark. Historically, Encore Capital Group's own EV-to-EBIT has ranged from 5.95 to 204.13 over the past decade. While the company's 10-year median is 12.06 vs. the industry median of 23.66, 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 EV-to-EBIT for a Credit Services company?
The median EV-to-EBIT among Credit Services companies is 23.66, based on 312 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encore Capital Group's current EV-to-EBIT of 8.68 is 63.3% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Encore Capital Group and its competitors. For the Credit Services industry, the median EV-to-EBIT is 23.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encore Capital Group's current EV-to-EBIT is 8.68, which is 28% below median its own 10-year median of 12.06. 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 €63.06, compared to a current price of €77.50 — trading 22.9% above its estimated fair value. The current EV-to-EBIT is 8.68, which is 28% below median its 10-year median of 12.06 and 63.3% below the Credit Services industry median of 23.66. Encore Capital Group's overall GF Score™ is 67/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Encore Capital Group (FRA:ECP), the current EV-to-EBIT is 8.68 as of Jul. 22, 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 €77.50 is trading 22.9% above its estimated GF Value™ of €63.06.
GuruFocus considers Encore Capital Group to be Modestly Overvalued.
Key valuation signals for FRA:ECP:
EV-to-EBIT: 8.68 (28% below median its 10-year median of 12.06)
GF Value™: €63.06 vs. price of €77.50 (22.9% above fair value)
Industry Position: 63.3% below the Credit Services median (#56 of 312)
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.
67GF Score
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