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Encore Capital Group (ECPG) After Results The Undervalued Case Still Holds

Simply Wall St · 1d ago

Encore Capital Group (ECPG) just posted third quarter and nine month 2026 results, giving investors fresh numbers on revenue, profitability, and earnings per share that frame the current phase of this debt recovery specialist.

Encore Capital Group shares now trade at US$99.93, after a 1-month share price return of 2.05% and a 90-day gain of 2.09%. The year-to-date share price return of 78.73% and 1-year total shareholder return of 133.75% point to strong momentum that recent earnings have helped reinforce.

Scan how Encore Capital Group stacks up against other financials with strong price momentum and earnings profiles by reviewing the hand picked 35 high quality undervalued stocks.

Encore Capital Group now combines a sharp earnings run with a share price that has already moved a long way. The next step is to see whether that performance is already fully embedded in today’s valuation.

Most Popular Narrative: 17% Undervalued

Encore Capital Group last closed at $99.93, while the leading narrative fair value sits higher at $120.38. That gap puts a spotlight on what the market might be missing in the balance between collection assets, debt load, and earnings power.

As I have previously written, ECPG is solid and undervalued. Despite recent analyst attention and a meaningful increase in its share price, I believe it remains undervalued. My valuation starts with its ERC, or Estimated Remaining Collections, which, based on the company’s latest filings, is approximately $10 billion. On that basis alone, the runoff or liquidation value of the company appears to far exceed its current market cap of less than $2 billion. Analysts are currently providing valuation ranges of roughly $80 to $110 per share, largely based on performance and earnings outlook. In my view, that range still misses five important short- and long-term considerations.

See why 9 investors see Encore Capital Group as 17% undervalued.

According to Joe222, this valuation hinges on Encore Capital Group’s estimated remaining collections pool of roughly $10b and a market capitalization of about $2.1b, a combination that suggests the liquidation value of its portfolios could meaningfully exceed the equity value implied by the current share price. The narrative also highlights Encore Capital Group’s position in consumer receivables, arguing that its scale, financing access, and focus on cash collections may not be fully reflected in where the stock trades today.

Result: Fair Value of $120.38 (UNDERVALUED)

Still, the Encore Capital Group story carries pressure points, including past goodwill write downs at Cabot and questions over how actively management invests in new technology and analytics.

Find out about the key risks to this Encore Capital Group narrative.

Next Steps

Mixed signals in the Encore Capital Group story so far. Act while the data is fresh and weigh both sides for yourself by reviewing the 3 key rewards and 1 important warning sign.

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