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Encompass Health Corp
NYSE:EHC

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Encompass Health Corp
NYSE:EHC
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Price: 107.48 USD 7.48% Market Closed
Market Cap: $10.7B

P/FCFE

34.8
Current
32%
Cheaper
vs 3-y average of 51.3

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
34.8
=
Market Cap
$10.7B
/
Free Cash Flow to Equity
$304m

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
34.8
=
Market Cap
$10.7B
/
Free Cash Flow to Equity
$304m

Valuation Scenarios

Encompass Health Corp is trading below its 3-year average

If P/FCFE returns to its 3-Year Average (51.3), the stock would be worth $158.18 (47% upside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-37%
Maximum Upside
+47%
Average Downside
9%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 34.8 $107.48
0%
3-Year Average 51.3 $158.18
+47%
5-Year Average 32.3 $99.62
-7%
Industry Average 21.8 $67.27
-37%
Country Average 21.9 $67.43
-37%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close

Market Distribution

In line with most companies in the United States of America
Percentile
68th
Based on 7 576 companies
68th percentile
34.8
Low
0 — 13.1
Typical Range
13.1 — 36.5
High
36.5 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 13.1
Median 21.9
70th Percentile 36.5
Max 3 188 432.5

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 3%
Intrinsic Value
Price $107.48
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