Encompass Health Corp (EHC) Fair Value & Analysis
Healthcare · US · Market cap $11.1B · ISIN US29261A1007
What is Encompass Health Corp really worth?
Encompass Health Corp
EHC · US
A solid business, but trading 12% above our fair value of $109.77.
Strengths
Risks
For context
Fair value as of: Aug 23, 2026
From 26 valuation models · updated 13 days ago
Share price +10.9% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The model range is unusually wide ($52.51 to $156.96). The outcome hinges heavily on assumptions, so read the point estimate with caution.
- The price sits in the upper half of our model range, so the margin of safety is thin.
- The data supports the verdict: every model runs on fully documented inputs.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 23, 2026.
How to read this chart
60‑month range $41.32 – $126.46 · fair‑value band $52.51 – $156.96 · the $122.59 price screens above the $109.77 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 23, 2026.
Analysis
Encompass Health Corp (EHC) currently trades at $122.59, while our model-based Fair Value estimate is $109.77, implying the stock looks roughly 11.7% overvalued today. The Quality Score stands at 60/100 (solid quality), in the Healthcare sector. Bull case: the Multiples group reads highest at a median of $114.38 per share, and 6 of the 26 models we run sit above the $122.59 price. Bear case: the Dividend Discount group reads lowest at $11.54, and 20 of the 26 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Encompass Health Corp generated revenue of $6.1B at a net margin of 10.0%. Revenue grew 9.0% year over year. It earns a return on equity of 25.2%. Net debt stands at $2.6B. Fundamentals as of Aug 23, 2026
Our scenario range runs from $52.51 (bear case) to $156.96 (bull case); at $122.59, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 4% below its 52-week high and 32% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at −7% fair-value upside, at −10%, EHC screens richer than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $3.44 per share, which is 3.1 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 26 models by family
Widest divergence: Multiples ($114.38) versus Dividend Discount ($11.54). Highest evidence: FCF DCF (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 23, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 59 · Market factors (momentum, volatility) 63
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Encompass Health Corporation operates inpatient rehabilitation hospitals in the United States and Puerto Rico. The company offers specialized rehabilitative treatment, using technology and therapy, on an inpatient basis for patients recovering from a major injury or illness and seeking to regain functional ability, independence, and quality of life; …
Full company description
Encompass Health Corporation operates inpatient rehabilitation hospitals in the United States and Puerto Rico. The company offers specialized rehabilitative treatment, using technology and therapy, on an inpatient basis for patients recovering from a major injury or illness and seeking to regain functional ability, independence, and quality of life; medical, nursing, therapy, and ancillary services; and rehabilitative care 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. It offers services through the Medicare program to the federal government, managed care plans and private insurers, state governments, and other patients. The company was formerly known as HealthSouth Corporation and changed its name to Encompass Health Corporation in January 2018. Encompass Health Corporation was incorporated in 1984 and is based in Birmingham, Alabama.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Encompass Health Corp reported revenue of $5.9B in FY2025 versus $4.0B in FY2021, a compound +10.3%/yr. Reported net income was $566M in FY2025, compounding +8.3%/yr from FY2021.
of which total revenue +6.5 % · buybacks/dilution −0.2 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
EHC screens 12% overvalued. Compare with HCA Healthcare, Inc →
Earlier news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- How EHC's Capacity Expansion Fuels a Multi-Year Growth Runway
- Encompass Health (EHC) Could Be 19% Undervalued On Its Growth Narrative
- Encompass Health (EHC) Stock Gets Fair Value Bump After Analysts Lift Targets
- Encompass Health (EHC) Stock May Be 16% Undervalued As Cash Flow Holds Up
Peer Group
Medical Care Facilities · 256 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Medical Care Facilities median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
Insider activity: 46/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Medical Care Facilities stocks, each showing price versus our Fair Value estimate (as of Aug 23, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| HCA Healthcare, Inc HCA | $417.82 | $547.67 | +31% |
| Fresenius SE FRE | €45.25 | €32.15 | −29% |
| Dr. Sulaiman Al Habib Medical Services Group 4013 | 241.00 SAR | 112.37 SAR | −53% |
| IHH Healthcare Berhad, an investment holding company, Q0F | 2.67 SGD | 1.44 SGD | −46% |
| Tenet Healthcare Corporation THC | $266.80 | $330.25 | +24% |
| DaVita Inc DVA | $180.68 | $186.49 | +3% |
| Apollo Hospitals Enterprise Limited APOLLOHOSP | ₹8,818 | ₹2,955 | −66% |
| Fresenius Medical Care AG FME | €39.92 | €71.28 | +79% |
| Aier Eye Hospital Group 300015 | ¥8.25 | ¥7.67 | −7% |
| Max Healthcare Institute Limited MAXHEALTH | ₹1,005 | ₹284.87 | −72% |
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