Is PRA Group, Inc. overvalued or undervalued?

As of 5 August 2024, PRA Group, Inc. has moved from a risky to a very attractive valuation grade, indicating a significant improvement in its perceived value. The company is currently undervalued, with a P/E ratio of 7, a Price to Book Value of 0.48, and an EV to EBIT of 1.21. These ratios suggest that the stock is trading at a substantial discount compared to its earnings and book value.
In comparison to its peers, PRA Group, Inc. stands out with a much lower P/E ratio than OPENLANE, Inc. at 21.56 and Healthcare Services Group, Inc. at 25.19, both of which are considered fairly valued. Additionally, PRA's EV to EBITDA ratio of 1.17 is significantly lower than OPENLANE's 10.51, further reinforcing its undervaluation. Despite a challenging year-to-date return of -29.39%, the recent stock performance against the S&P 500 shows a positive weekly return of 0.27%, suggesting a potential turnaround.