Encompass Health Corp
NYSE:EHC
Decide at what price you'd be comfortable buying and we'll help you stay ready.
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P/E
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.
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.
Valuation Scenarios
If P/E returns to its 3-Year Average (21.6), the stock would be worth $123.59 (20% upside from current price).
| Scenario | P/E Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 17.9 | $102.61 |
0%
|
| 3-Year Average | 21.6 | $123.59 |
+20%
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| 5-Year Average | 20.9 | $119.97 |
+17%
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| Industry Average | 27.6 | $158.05 |
+54%
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| Country Average | 22.9 | $131 |
+28%
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Forward P/E
Today’s price vs future net income
| Today's Market Cap | Net Income | Forward P/E | ||
|---|---|---|---|---|
|
$10.7B
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/ |
Jan 2026
$564.7m
|
= |
|
|
$10.7B
|
/ |
Dec 2026
$598.2m
|
= |
|
|
$10.7B
|
/ |
Dec 2027
$650m
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= |
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$10.7B
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/ |
Dec 2028
$719.8m
|
= |
|
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$10.7B
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/ |
Dec 2029
$772.2m
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= |
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Forward P/E shows whether today’s P/E still looks high or low once future net income are taken into account.
Peer Comparison
| Market Cap | P/E | ||||
|---|---|---|---|---|---|
| US |
|
Encompass Health Corp
NYSE:EHC
|
10.2B USD | 17.9 | |
| US |
|
HCA Healthcare Inc
NYSE:HCA
|
97.2B USD | 14.3 | |
| SA |
|
Dr Sulaiman Al-Habib Medical Services Group Co
SAU:4013
|
98B SAR | 40.8 | |
| ZA |
N
|
Netcare Ltd
JSE:NTC
|
23.2B ZAR | 13.8 | |
| MY |
I
|
IHH Healthcare Bhd
KLSE:IHH
|
77.8B MYR | 37.1 | |
| ZA |
L
|
Life Healthcare Group Holdings Ltd
JSE:LHC
|
17.5B ZAR | 4.5 | |
| BR |
|
Rede D'Or Sao Luiz SA
BOVESPA:RDOR3
|
84.8B BRL | 17.9 | |
| US |
|
Tenet Healthcare Corp
NYSE:THC
|
15.7B USD | 11.2 | |
| CN |
A
|
Aier Eye Hospital Group Co Ltd
SZSE:300015
|
103.3B CNY | 30.7 | |
| IN |
|
Apollo Hospitals Enterprise Ltd
NSE:APOLLOHOSP
|
1.1T INR | 61.3 | |
| US |
|
Ensign Group Inc
NASDAQ:ENSG
|
10.8B USD | 31.1 |
Market Distribution
| Min | 0 |
| 30th Percentile | 15.3 |
| Median | 22.9 |
| 70th Percentile | 33.2 |
| Max | 1 826 183.3 |
Other Multiples
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.