Encore Capital Group Stock Market Value
| ECPG Stock | USD 48.04 0.44 0.92% |
| Symbol | Encore |
Encore Capital Group Price To Book Ratio
Is Consumer Finance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Encore Capital. If investors know Encore will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Encore Capital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.595 | Earnings Share (7.83) | Revenue Per Share 55.731 | Quarterly Revenue Growth 0.186 | Return On Assets 0.0425 |
The market value of Encore Capital Group is measured differently than its book value, which is the value of Encore that is recorded on the company's balance sheet. Investors also form their own opinion of Encore Capital's value that differs from its market value or its book value, called intrinsic value, which is Encore Capital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Encore Capital's market value can be influenced by many factors that don't directly affect Encore Capital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Encore Capital's value and its price as these two are different measures arrived at by different means. Investors typically determine if Encore Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Encore Capital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Encore Capital 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Encore Capital's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Encore Capital.
| 10/23/2024 |
| 11/22/2024 |
If you would invest 0.00 in Encore Capital on October 23, 2024 and sell it all today you would earn a total of 0.00 from holding Encore Capital Group or generate 0.0% return on investment in Encore Capital over 30 days. Encore Capital is related to or competes with Guild Holdings, Mr Cooper, CNFinance Holdings, Security National, PennyMac Finl, and Velocity Financial. Encore Capital Group, Inc., a specialty finance company, provides debt recovery solutions and other related services for... More
Encore Capital Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Encore Capital's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Encore Capital Group upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.07) | |||
| Maximum Drawdown | 9.26 | |||
| Value At Risk | (2.42) | |||
| Potential Upside | 3.27 |
Encore Capital Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Encore Capital's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Encore Capital's standard deviation. In reality, there are many statistical measures that can use Encore Capital historical prices to predict the future Encore Capital's volatility.| Risk Adjusted Performance | (0.01) | |||
| Jensen Alpha | (0.15) | |||
| Total Risk Alpha | (0.24) | |||
| Treynor Ratio | (0.03) |
Encore Capital Group Backtested Returns
Encore Capital Group secures Sharpe Ratio (or Efficiency) of -0.0308, which denotes the company had a -0.0308% return per unit of standard deviation over the last 3 months. Encore Capital Group exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Encore Capital's Coefficient Of Variation of (5,812), mean deviation of 1.33, and Standard Deviation of 1.79 to check the risk estimate we provide. The firm shows a Beta (market volatility) of 1.3, which means a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Encore Capital will likely underperform. At this point, Encore Capital Group has a negative expected return of -0.0549%. Please make sure to confirm Encore Capital's maximum drawdown, and the relationship between the information ratio and accumulation distribution , to decide if Encore Capital Group performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.67 |
Very good reverse predictability
Encore Capital Group has very good reverse predictability. Overlapping area represents the amount of predictability between Encore Capital time series from 23rd of October 2024 to 7th of November 2024 and 7th of November 2024 to 22nd of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Encore Capital Group price movement. The serial correlation of -0.67 indicates that around 67.0% of current Encore Capital price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.67 | |
| Spearman Rank Test | -0.35 | |
| Residual Average | 0.0 | |
| Price Variance | 0.55 |
Encore Capital Group lagged returns against current returns
Autocorrelation, which is Encore Capital stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Encore Capital's stock expected returns. We can calculate the autocorrelation of Encore Capital returns to help us make a trade decision. For example, suppose you find that Encore Capital has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Encore Capital regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Encore Capital stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Encore Capital stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Encore Capital stock over time.
Current vs Lagged Prices |
| Timeline |
Encore Capital Lagged Returns
When evaluating Encore Capital's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Encore Capital stock have on its future price. Encore Capital autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Encore Capital autocorrelation shows the relationship between Encore Capital stock current value and its past values and can show if there is a momentum factor associated with investing in Encore Capital Group.
Regressed Prices |
| Timeline |
Currently Active Assets on Macroaxis
When determining whether Encore Capital Group is a strong investment it is important to analyze Encore Capital's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Encore Capital's future performance. For an informed investment choice regarding Encore Stock, refer to the following important reports:Check out Encore Capital Correlation, Encore Capital Volatility and Encore Capital Alpha and Beta module to complement your research on Encore Capital. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Encore Capital technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.