Historical Valuation
Encompass Health Corp (EHC) is now in the Fair zone, suggesting that its current forward PE ratio of 18.83 is considered Fairly compared with the five-year average of 19.40. The fair price of Encompass Health Corp (EHC) is between 97.91 to 116.24 according to relative valuation methord.
Relative Value
Fair Zone
97.91-116.24
Current Price:106.37
Fair
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
Encompass Health Corp (EHC) has a current Price-to-Book (P/B) ratio of 4.51. Compared to its 3-year average P/B ratio of 4.79 , the current P/B ratio is approximately -5.87% higher. Relative to its 5-year average P/B ratio of 4.46, the current P/B ratio is about 1.22% higher. Encompass Health Corp (EHC) has a Forward Free Cash Flow (FCF) yield of approximately 3.76%. Compared to its 3-year average FCF yield of 2.91%, the current FCF yield is approximately 29.42% lower. Relative to its 5-year average FCF yield of 3.40% , the current FCF yield is about 10.66% lower.
P/B
Median3y
4.79
Median5y
4.46
FCF Yield
Median3y
2.91
Median5y
3.40
Competitors Valuation Multiple
AI Analysis for EHC
The average P/S ratio for EHC competitors is 2.95, providing a benchmark for relative valuation. Encompass Health Corp Corp (EHC.N) exhibits a P/S ratio of 1.70, which is -42.47% above the industry average. Given its robust revenue growth of 9.36%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for EHC
1Y
3Y
5Y
Market capitalization of EHC increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of EHC in the past 1 year is driven by Unknown.
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Frequently Asked Questions
Is EHC currently overvalued or undervalued?
Encompass Health Corp (EHC) is now in the Fair zone, suggesting that its current forward PE ratio of 18.83 is considered Fairly compared with the five-year average of 19.40. The fair price of Encompass Health Corp (EHC) is between 97.91 to 116.24 according to relative valuation methord.
What is Encompass Health Corp (EHC) fair value?
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. The fair price of Encompass Health Corp (EHC) is between 97.91 to 116.24 according to relative valuation methord.
How does EHC's valuation metrics compare to the industry average?
The average P/S ratio for EHC's competitors is 2.95, providing a benchmark for relative valuation. Encompass Health Corp Corp (EHC) exhibits a P/S ratio of 1.70, which is -42.47% above the industry average. Given its robust revenue growth of 9.36%, this premium appears unsustainable.
What is the current P/B ratio for Encompass Health Corp (EHC) as of Jan 09 2026?
As of Jan 09 2026, Encompass Health Corp (EHC) has a P/B ratio of 4.51. This indicates that the market values EHC at 4.51 times its book value.
What is the current FCF Yield for Encompass Health Corp (EHC) as of Jan 09 2026?
As of Jan 09 2026, Encompass Health Corp (EHC) has a FCF Yield of 3.76%. This means that for every dollar of Encompass Health Corp’s market capitalization, the company generates 3.76 cents in free cash flow.
What is the current Forward P/E ratio for Encompass Health Corp (EHC) as of Jan 09 2026?
As of Jan 09 2026, Encompass Health Corp (EHC) has a Forward P/E ratio of 18.83. This means the market is willing to pay $18.83 for every dollar of Encompass Health Corp’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Encompass Health Corp (EHC) as of Jan 09 2026?
As of Jan 09 2026, Encompass Health Corp (EHC) has a Forward P/S ratio of 1.70. This means the market is valuing EHC at $1.70 for every dollar of expected revenue over the next 12 months.