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Encompass Health Corp
NYSE:EHC

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Encompass Health Corp
NYSE:EHC
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Price: 102.61 USD 0.9% Market Closed
Market Cap: $10.2B

P/E

17.9
Current
17%
Cheaper
vs 3-y average of 21.6

Price to Earnings (P/E) ratio shows how much investors pay for each dollar of a company`s earnings. It`s calculated by dividing the company`s market value by its total earnings.

P/E
17.9
=
Market Cap
$10.7B
/
Net Income
$564.7m

Price to Earnings (P/E) ratio shows how much investors pay for each dollar of a company`s earnings. It`s calculated by dividing the company`s market value by its total earnings.

P/E
17.9
=
Market Cap
$10.7B
/
Net Income
$564.7m

Valuation Scenarios

Encompass Health Corp is trading below its 3-year average

If P/E returns to its 3-Year Average (21.6), the stock would be worth $123.59 (20% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+54%
Average Upside
30%
Scenario P/E Value Implied Price Upside/Downside
Current Multiple 17.9 $102.61
0%
3-Year Average 21.6 $123.59
+20%
5-Year Average 20.9 $119.97
+17%
Industry Average 27.6 $158.05
+54%
Country Average 22.9 $131
+28%

Forward P/E
Today’s price vs future net income

Today's Market Cap Net Income Forward P/E
$10.7B
/
Jan 2026
$564.7m
=
17.9
Current
$10.7B
/
Dec 2026
$598.2m
=
17.9
Forward
$10.7B
/
Dec 2027
$650m
=
16.5
Forward
$10.7B
/
Dec 2028
$719.8m
=
14.9
Forward
$10.7B
/
Dec 2029
$772.2m
=
13.9
Forward

Forward P/E shows whether today’s P/E still looks high or low once future net income are taken into account.

Market Distribution

In line with most companies in the United States of America
Percentile
38th
Based on 8 489 companies
38th percentile
17.9
Low
0 — 15.3
Typical Range
15.3 — 33.2
High
33.2 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 15.3
Median 22.9
70th Percentile 33.2
Max 1 826 183.3

Encompass Health Corp
Glance View

Encompass Health Corporation has carved a distinctive niche in the healthcare industry as a leading provider of rehabilitation services. Formed through the combination of HealthSouth Corporation and Encompass Home Health & Hospice, the company leverages its extensive network of inpatient rehabilitation hospitals, home health agencies, and hospice agencies to deliver high-quality rehabilitative care across the United States. Operating in a field that requires precision and empathy, Encompass Health focuses on helping patients regain their independence after illnesses, injuries, or surgeries. The company's business model is centered around patient recovery, wherein they use a team-based approach involving physicians, therapists, and nurses, further enriched by state-of-the-art technology and evidence-based practices. Their inpatient rehabilitation hospitals offer specialized programs that significantly reduce the time and cost of patient recovery compared to general hospitals, thereby attracting a steady flow of referrals from healthcare providers. Financially, Encompass Health derives its revenue by billing patients' insurance providers, including Medicare and Medicaid, based on the services rendered during the patients' recovery process. By primarily focusing on inpatient rehabilitation and home health services, segments that are in high demand due to the aging population and rising prevalence of chronic conditions, the company has positioned itself well for sustainable growth. The strategic expansion of their footprint through acquisitions and organic growth, along with innovative treatment offerings, enhances their market reach and capacity. This operational strategy not only ensures a steady revenue stream but also buffers against the inherent uncertainties in the healthcare landscape. Balancing regulatory compliance with exceptional patient care, Encompass Health thrives in a competitive industry, continually adapting to shifts in healthcare policy while maintaining a strong emphasis on patient outcomes.

EHC Intrinsic Value
110.26 USD
Undervaluation 7%
Intrinsic Value
Price $102.61
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