Is PRA Group, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for PRA Group, Inc. has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company appears to be undervalued, supported by a P/E ratio of 7, a Price to Book Value of 0.48, and an EV to EBITDA ratio of 1.17, all of which suggest that the stock is trading at a discount relative to its earnings and book value.
In comparison to its peers, PRA Group, Inc. has a more favorable P/E ratio than Conduent, Inc. at 4.72 and Thoughtworks Holding, Inc. at -25.45, highlighting its relative attractiveness in the market. Despite this, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -17.23% compared to the index's 12.22%, and a three-year return of -51.61% versus 70.41% for the S&P 500, reinforcing the notion that the stock may be undervalued given its strong fundamentals.