PRA Group engages in the purchase, collection, and management of portfolios of defaulted consumer receivables in North America and Europe. It is involved in the acquisition, collection, and processing of unpaid and normal-course accounts receivable owed to credit grantors, governments, retailers, and others. The company was founded in 1996 and is based in Norfolk, Virginia.
PRAA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Pra Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Pra Group Inc ranked in the 36th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 37.17%. The most interesting components of our discounted cash flow analysis for Pra Group Inc ended up being:
The company's compound free cash flow growth rate over the past 5.69 years comes in at -0.05%; that's greater than only 18.91% of US stocks we're applying DCF forecasting to.
42% of the company's capital comes from equity, which is greater than merely 17.91% of stocks in our cash flow based forecasting set.
Relative to other stocks in its sector (Financial Services), Pra Group Inc has a reliance on debt greater than 77.49% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as PRAA, try AMRK, GBL, ICE, WU, and MMC.
Business has been improving for several quarters at PRA Group (PRAA), and a "perfect storm" (or at least a fortunate combination of events) in the second quarter catapulted some performance metrics even higher. While management themselves don't believe that the cash efficiency ratio seen in the second quarter is anything...
Stephen Simpson, CFA on Seeking Alpha | August 12, 2020
PRA Group ([[PRAA]] +3.0%) to offer $300M of senior unsecured notes due 2025 in a private transaction. Net proceeds will be utilized to repay ~$295M of outstanding revolving borrowings under its North American Credit Agreement.Press release...
PRA Group, Inc. (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans, will report its second quarter 2020 results after market close on Thursday, Aug. 6, 2020, followed by a webcast and conference call at 5 p.m. E.T.
PRA Group, Inc. (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans, announced today that Brett Paschke was appointed to the Company's Board of Directors effective July 1, 2020. Paschke, who is independent, will serve on the Audit Committee and Compliance Committee.