Encompass Health Corporation

Encompass Health Corporation

EHCยทNYSE

$103.17

+1.4%
HealthcareMedical - Care Facilities

Encompass Health Corporation provides facility-based and home-based post-acute healthcare services in the United States. The company operates in two segments, Inpatient Rehabilitation, and Home Health and Hospice. The Inpatient Rehabilitation segment provides specialized rehabilitative treatment on an inpatient and outpatient basis to patients who are recovering from conditions, such as stroke and other neurological disorders, cardiac and pulmonary conditions, brain and spinal cord injuries, complex orthopedic conditions, and amputations. The Home Health and Hospice segment provides home health and hospice services primarily in the Southeast and Texas. Its home health services include a range of Medicare-certified home nursing services to adult patients in need of care comprising skilled nursing, medical social work, and home health aide services, as well as physical, occupational, speech therapy, and others. This segment's hospice services comprise in-home services to terminally ill patients and their families. As of June 1, 2022, it operated 149 hospitals, 252 home health locations, and 99 hospice locations in 42 states and Puerto Rico. The company was formerly known as HealthSouth Corporation and changed its name to Encompass Health Corporation in January 2018. Encompass Health Corporation was founded in 1983 and is based in Birmingham, Alabama.

At a Glance

Live Snapshot
Market Cap$10.23B
EPS5.6200
P/E Ratio18.36
Earnings Date08/03/2026
Encompass Health Corporation

Encompass Health Corporation Fair Value Envelope

EHC ยท NYSE

Our analysis suggests that EHC has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $103.17, this represents a potential HIDDEN relative to our calculated worth for Encompass Health Corporation.

Intrinsic Value
Current Price: $103.17

Owner Earnings Valuation Tool

Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation

Historical Financial Data

Base year metrics used for projections

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Projection Settings

Forecast period and terminal assumptions

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DCF Valuation Summary

Calculation flow from present value to intrinsic value per share

Present Value$79.9B
+ Cash & Equivalents$102.9M
Firm Value$80.0B
- Debt$2.7B
Equity Value$77.3B
/ Shares Outstanding100,619,834B
DCF Value$768
UNDERVALUED BY 645%

Owner Earnings Projections

Operating Cash Flow - Maintenance CapEx = Owner Earnings

Metric
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Operating Cash Flow
$1.4B
$1.7B
$2.1B
$2.6B
$3.2B
$3.9B
$4.7B
$5.7B
$7.0B
$8.5B
Maintenance CapEx
-$179.5M
-$218.8M
-$266.8M
-$325.2M
-$396.4M
-$483.2M
-$589.0M
-$718.0M
-$875.2M
-$1.1B
Owner Earnings
$1.3B
$1.5B
$1.9B
$2.3B
$2.8B
$3.4B
$4.1B
$5.0B
$6.1B
$7.4B
Discount Factor
0.926
0.857
0.794
0.735
0.681
0.630
0.583
0.540
0.500
0.463
Present Value
$1.2B
$1.3B
$1.5B
$1.7B
$1.9B
$2.1B
$2.4B
$2.7B
$3.1B
$3.5B
Terminal Value represents 73.4% of Enterprise Value