Is It Too Late To Consider Enova International After Its 498% Five Year Surge?

• If you have been wondering whether Enova International is still good value after such a big run, you are not alone. This article is going to unpack whether the current price still leaves upside on the table.
• The stock has kept rewarding patient shareholders, climbing 4.2% over the last week, 11.2% over the past month, and 41.6% year to date, on top of a 498.0% gain over five years.
• Investors have been digesting a steady stream of updates around Enova's expansion in digital lending and credit analytics, along with regulatory developments that shape how aggressively it can grow. These themes, plus a broader shift toward data driven consumer finance, help explain why the market has been willing to re rate the stock in recent years.
• Despite that strength, Enova only scores a 2 out of 6 on our undervaluation checks. In the next sections we will walk through what different valuation approaches are saying, and then finish with a more holistic way to think about what the stock is truly worth.

Enova International scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Enova International Excess Returns Analysis

The Excess Returns model looks at how much value Enova creates above the return that shareholders reasonably demand, based on the company investing its equity at attractive rates over time.

In this framework, Enova starts with a Book Value of $51.59 per share and a Stable EPS of $7.31 per share, derived from a Median Return on Equity over the past five years of 17.15%. The Cost of Equity is estimated at $4.59 per share, which means Enova is expected to generate an Excess Return of $2.72 per share each year. That excess is capitalized over a Stable Book Value base of $42.63 per share, implying meaningful value creation as long as the company can sustain similar economics.

Putting these inputs together, the Excess Returns model arrives at an intrinsic value of about $78.79 per share. With the model indicating the stock is roughly 72.8% overvalued relative to the current price, the implication is that the market is already pricing in very strong and persistent returns on equity.

Result: OVERVALUED

Our Excess Returns analysis suggests Enova International may be overvalued by 72.8%. Discover 909 undervalued stocks or create your own screener to find better value opportunities.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Enova International.

Approach 2: Enova International Price vs Earnings

For a consistently profitable lender like Enova, the price to earnings, or PE, ratio is a useful shorthand for how much investors are willing to pay for each dollar of current earnings. It ties directly to the bottom line that ultimately supports shareholder returns, making it a practical anchor for valuation when earnings are relatively stable.

What counts as a normal or fair PE depends on how quickly profits are expected to grow and how risky those earnings are. Higher expected growth and lower risk can justify a higher multiple, while slower growth or more cyclical earnings usually warrant a discount. With that in mind, Enova currently trades on a PE of about 11.5x, slightly above the Consumer Finance industry average of roughly 10.1x but well below the broader peer group average of around 42.8x.

Simply Wall St’s Fair Ratio, at 15.7x, estimates what a justified PE should be for Enova, given its growth profile, margins, industry positioning, market cap, and risk factors. Because this metric is tailored to the company, it is more informative than a simple comparison with sector or peer averages. On this basis, Enova’s current 11.5x PE sits below its 15.7x Fair Ratio, suggesting the shares still trade at a discount to their fundamentals.

Result: UNDERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1442 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Enova International Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way to connect your view of Enova International’s future with a concrete financial forecast and fair value estimate. A Narrative is just your story behind the numbers, where you spell out how you think Enova’s revenue, earnings, and margins will evolve, and the platform turns that perspective into projected financials and a fair value that you can compare directly with today’s share price to decide whether to buy, hold, or sell. Narratives live inside Simply Wall St’s Community page, where millions of investors use them as an accessible, visual tool that automatically refreshes when new information like earnings, guidance, or news arrives, so your fair value stays aligned with reality. For example, one optimistic Enova Narrative might assume strong digital lending momentum and assign a fair value near $140, while a more cautious Narrative, worried about regulation and credit risk, might land closer to $111, giving you a clear, dynamic range to benchmark your own view against the current market price.

Do you think there's more to the story for Enova International? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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