Encore Capital Group (FRA:ECP) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Encore Capital Group Forward PE Ratio Related Terms
Encore Capital Group Forward PE Ratio Historical Data
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The historical data trend for Encore Capital Group's Forward PE Ratio 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.
Encore Capital Group Forward PE Ratio Chart
Encore Capital Group Annual Data
Trend
2015-12
2017-12
2018-12
2019-12
2020-12
2021-12
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
5.10
10.65
4.37
5.61
4.40
6.59
6.68
6.61
6.21
5.78
Encore Capital Group Quarterly Data
2015-12
2016-03
2016-06
2016-09
2017-03
2017-06
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
5.10
3.95
4.46
3.62
8.14
10.56
10.65
9.51
7.81
6.81
4.37
5.41
6.94
5.60
5.61
4.15
4.17
4.09
4.40
6.27
6.12
6.28
6.59
7.79
7.12
4.75
6.68
9.83
8.81
5.25
6.61
7.35
6.66
5.31
6.21
5.48
5.64
5.22
5.78
5.87
FRA:ECP vs QFIN, EZPW, AGM.A: Forward PE Ratio Comparison
For the Credit Services subindustry, Encore Capital Group's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Encore Capital Group's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Encore Capital Group's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Encore Capital Group (FRA:ECP) has a Forward PE Ratio of 6.28 as of Jul. 11, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Encore Capital Group and its competitors. According to the industry distribution chart, Encore Capital Group ranks #51 out of 187 companies in the Credit Services industry, placing it in the top 27.3%.
Is Encore Capital Group's Forward PE Ratio too high?
Encore Capital Group's current Forward PE Ratio is 6.28. The Credit Services industry median Forward PE Ratio is 10.05. Encore Capital Group's value of 6.28 is 37.5% below this industry median. Based on the distribution chart, Encore Capital Group ranks #51 out of 187 companies in the Credit Services industry, which is above the industry midpoint. Overall, Encore Capital Group has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Encore Capital Group's Forward PE Ratio compare to QFIN and EZPW?
According to the Credit Services industry distribution chart, Encore Capital Group ranks #51 out of 187 companies for Forward PE Ratio. This puts Encore Capital Group in the upper half of its industry. The industry median Forward PE Ratio is 10.05. Encore Capital Group's value of 6.28 is 37.5% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Credit Services company?
The median Forward PE Ratio among Credit Services companies is 10.05, based on 187 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encore Capital Group's current Forward PE Ratio of 6.28 is 37.5% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Encore Capital Group and its competitors. For the Credit Services industry, the median Forward PE Ratio is 10.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encore Capital Group's current Forward PE Ratio is 6.28. 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 €61.81, compared to a current price of €79.00 — trading 27.8% above its estimated fair value. The current Forward PE Ratio is 6.28 and 37.5% below the Credit Services industry median of 10.05. Encore Capital Group's overall GF Score™ is 64/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Encore Capital Group (FRA:ECP), the current Forward PE Ratio is 6.28 as of Jul. 11, 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 €79.00 is trading 27.8% above its estimated GF Value™ of €61.81.
GuruFocus considers Encore Capital Group to be Modestly Overvalued.
Key valuation signals for FRA:ECP:
Forward PE Ratio: 6.28
GF Value™: €61.81 vs. price of €79.00 (27.8% above fair value)
Industry Position: 37.5% below the Credit Services median (#51 of 187)
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.
64GF Score
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Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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