Update shared on 06 Dec 2025
Analysts have raised their price target on Encore Capital Group slightly to align with a refined fair value estimate of $60.25. This reflects stable growth and margin assumptions that support a modestly improved outlook.
What's in the News
- Encore Capital Group increased its equity buyback authorization by $300 million on November 5, 2025, raising the total program size to $600 million (company announcement).
- Between July 1, 2025 and November 5, 2025, the company repurchased 844,337 shares for $35.01 million, amounting to 3.66% of shares outstanding (company announcement).
- Since the buyback program launched on August 12, 2015, Encore has cumulatively repurchased 5,647,479 shares, or 21.36% of its shares, for a total of $268.19 million (company announcement).
Valuation Changes
- Fair Value Estimate remains unchanged at $60.25 per share, indicating no material reassessment of intrinsic value.
- Discount Rate is maintained at 12.5%, reflecting a stable view of Encore Capital Group's risk profile.
- Revenue Growth is effectively unchanged at about 9.15% annually, with only immaterial rounding differences in the model inputs.
- Net Profit Margin remains effectively stable at about 38.95%, with negligible numerical refinements that do not alter the valuation narrative.
- Future P/E Multiple is held steady at approximately 1.95x, signaling no change in the expected valuation multiple applied to forward earnings.
Disclaimer
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