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 20.01 is considered Fairly compared with the five-year average of 19.44. The fair price of Encompass Health Corp (EHC) is between 111.47 to 130.04 according to relative valuation methord.
Relative Value
Fair Zone
111.47-130.04
Current Price：113.04
Fair
20.01
PE
1Y
3Y
5Y
Trailing
Forward
11.19
EV/EBITDA
Encompass Health Corp. (EHC) has a current EV/EBITDA of 11.19. The 5-year average EV/EBITDA is 11.07. The thresholds are as follows: Strongly Undervalued below 9.39, Undervalued between 9.39 and 10.23, Fairly Valued between 11.91 and 10.23, Overvalued between 11.91 and 12.76, and Strongly Overvalued above 12.76. The current Forward EV/EBITDA of 11.19 falls within the Historic Trend Line -Fairly Valued range.
14.30
EV/EBIT
Encompass Health Corp. (EHC) has a current EV/EBIT of 14.30. The 5-year average EV/EBIT is 14.74. The thresholds are as follows: Strongly Undervalued below 12.65, Undervalued between 12.65 and 13.70, Fairly Valued between 15.79 and 13.70, Overvalued between 15.79 and 16.83, and Strongly Overvalued above 16.83. The current Forward EV/EBIT of 14.30 falls within the Historic Trend Line -Fairly Valued range.
1.80
PS
Encompass Health Corp. (EHC) has a current PS of 1.80. The 5-year average PS is 1.49. The thresholds are as follows: Strongly Undervalued below 1.00, Undervalued between 1.00 and 1.25, Fairly Valued between 1.74 and 1.25, Overvalued between 1.74 and 1.99, and Strongly Overvalued above 1.99. The current Forward PS of 1.80 falls within the Overvalued range.
9.31
P/OCF
Encompass Health Corp. (EHC) has a current P/OCF of 9.31. The 5-year average P/OCF is 9.69. The thresholds are as follows: Strongly Undervalued below 6.72, Undervalued between 6.72 and 8.21, Fairly Valued between 11.18 and 8.21, Overvalued between 11.18 and 12.66, and Strongly Overvalued above 12.66. The current Forward P/OCF of 9.31 falls within the Historic Trend Line -Fairly Valued range.
19.79
P/FCF
Encompass Health Corp. (EHC) has a current P/FCF of 19.79. The 5-year average P/FCF is 28.27. The thresholds are as follows: Strongly Undervalued below 12.23, Undervalued between 12.23 and 20.25, Fairly Valued between 36.29 and 20.25, Overvalued between 36.29 and 44.31, and Strongly Overvalued above 44.31. The current Forward P/FCF of 19.79 falls within the Undervalued range.
Encompass Health Corp (EHC) has a current Price-to-Book (P/B) ratio of 4.80. Compared to its 3-year average P/B ratio of 4.80 , the current P/B ratio is approximately -0.04% higher. Relative to its 5-year average P/B ratio of 4.47, the current P/B ratio is about 7.21% 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 2.85%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.39% , the current FCF yield is about -100.00% lower.
4.79
P/B
Median3y
4.80
Median5y
4.47
3.54
FCF Yield
Median3y
2.85
Median5y
3.39
Competitors Valuation Multiple
The average P/S ratio for EHC's competitors is 0.59, 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 9.36%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of EHC increased by 22.38% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.35B to 1.48B.
The secondary factor is the Margin Expansion, contributed 8.23%to the performance.
Overall, the performance of EHC in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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