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 40th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 35.5%. 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 5.5 years comes in at -0.06%; that's greater than just 17.04% of US stocks we're applying DCF forecasting to.
38% of the company's capital comes from equity, which is greater than merely 12.7% 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 82.78% 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 RLI, AON, MMC, AMRK, and ICCH.
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