Question 1

What is Encore Capital Group, Inc.'s WACC?

Accepted Answer

Encore Capital Group, Inc. (ECPG) has a Weighted Average Cost of Capital (WACC) of 7.45%. This is calculated using a Cost of Equity of 8.63% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 6.88%, with an equity weight of 32.61% in the capital structure.

Question 2

Is Encore Capital Group, Inc.'s WACC high or low?

Accepted Answer

Encore Capital Group, Inc.'s WACC of 7.45% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Encore Capital Group, Inc.'s WACC calculated?

Accepted Answer

Encore Capital Group, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.63% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 6.88%. The capital structure is 32.61% equity and 67.39% debt.

Encore Capital Group, Inc. (ECPG) — WACC 分析

WACC 构成

解读

Encore Capital Group, Inc.（ECPG）WACC：7.45%

WACC计算器

Encore Capital Group, Inc.（ECPG） WACC 解读

ECPG 公司分析

ECPG DCF 估值

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