Encore Capital - Comparative Multiple Analysis

Encore Capital (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Encore Capital

WikiWealth compares Encore Capital's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Encore Capital's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Encore Capital.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Encore Capital's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Encore Capital's Analysis

How does this work? The Comparative Investment Analysis determines the value of Encore Capital by comparing Encore Capital financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Encore Capital.

See the Encore Capital cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Encore Capital.

Also, see the Encore Capital's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Encore Capital's valuation conclusion for a quick summary.