EHC Valuation

Encompass Health Corp

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121.940

-0.25(-0.205%)1D

Overview
Forecast
Valuation
Earnings

EHC Relative Valuation

EHC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, EHC is overvalued; if below, it's undervalued.

Historical Valuation

Encompass Health Corp (EHC) is now in the Fair zone, suggesting that its current forward PE ratio of 22.21 is considered Fairly compared with the five-year average of 19.27. The fair price of Encompass Health Corp (EHC) is between 105.71 to 123.38 according to relative valuation methord.

Relative Value

Fair Zone

105.71-123.38

Current Price：121.94

Fair

22.21

Trailing

Forward

12.14

EV/EBITDA

Encompass Health Corp. (EHC) has a current EV/EBITDA of 12.14. The 5-year average EV/EBITDA is 11.02. The thresholds are as follows: Strongly Undervalued below 9.37, Undervalued between 9.37 and 10.19, Fairly Valued between 11.84 and 10.19, Overvalued between 11.84 and 12.66, and Strongly Overvalued above 12.66. The current Forward EV/EBITDA of 12.14 falls within the Overvalued range.

15.46

EV/EBIT

Encompass Health Corp. (EHC) has a current EV/EBIT of 15.46. The 5-year average EV/EBIT is 14.72. The thresholds are as follows: Strongly Undervalued below 12.60, Undervalued between 12.60 and 13.66, Fairly Valued between 15.78 and 13.66, Overvalued between 15.78 and 16.83, and Strongly Overvalued above 16.83. The current Forward EV/EBIT of 15.46 falls within the Historic Trend Line -Fairly Valued range.

1.99

Encompass Health Corp. (EHC) has a current PS of 1.99. The 5-year average PS is 1.46. The thresholds are as follows: Strongly Undervalued below 1.01, Undervalued between 1.01 and 1.24, Fairly Valued between 1.68 and 1.24, Overvalued between 1.68 and 1.91, and Strongly Overvalued above 1.91. The current Forward PS of 1.99 falls within the Strongly Overvalued range.

11.07

P/OCF

Encompass Health Corp. (EHC) has a current P/OCF of 11.07. The 5-year average P/OCF is 9.73. The thresholds are as follows: Strongly Undervalued below 6.71, Undervalued between 6.71 and 8.22, Fairly Valued between 11.24 and 8.22, Overvalued between 11.24 and 12.74, and Strongly Overvalued above 12.74. The current Forward P/OCF of 11.07 falls within the Historic Trend Line -Fairly Valued range.

17.48

P/FCF

Encompass Health Corp. (EHC) has a current P/FCF of 17.48. The 5-year average P/FCF is 29.94. The thresholds are as follows: Strongly Undervalued below 11.63, Undervalued between 11.63 and 20.79, Fairly Valued between 39.09 and 20.79, Overvalued between 39.09 and 48.25, and Strongly Overvalued above 48.25. The current Forward P/FCF of 17.48 falls within the Undervalued range.

Encompass Health Corp (EHC) has a current Price-to-Book (P/B) ratio of 5.40. Compared to its 3-year average P/B ratio of 4.66 , the current P/B ratio is approximately 15.92% higher. Relative to its 5-year average P/B ratio of 4.43, the current P/B ratio is about 21.76% higher. Encompass Health Corp (EHC) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.78%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.41% , the current FCF yield is about -100.00% lower.

5.40

P/B

Median3y

4.66

Median5y

4.43

3.57

FCF Yield

Median3y

2.78

Median5y

3.41

Competitors Valuation Multiple

The average P/S ratio for EHC's competitors is 1.65, providing a benchmark for relative valuation. Encompass Health Corp Corp (EHC) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 12.03%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

EHC.N

Encompass Health Corp

Fresenius Medical Care AG

Hims & Hers Health Inc

Performance Decomposition

Market capitalization of EHC increased by 31.52% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 11.35 to 12.75.

The secondary factor is the Revenue Growth, contributed 12.03%to the performance.

Overall, the performance of EHC in the past 1 year is driven by Margin Expansion. Which is more sustainable.

12.03%

1.30B → 1.46B

Revenue Growth

12.33%

11.35 → 12.75

Margin Expansion

7.16%

22.20 → 23.79

P/E Change

31.52%