Encompass Health Corporation (EHC) Fair Value & Analysis
Healthcare · US · Market cap $11.1B
Encompass Health Corporation
EHC · US
Fair value as of: Jul 20, 2026
From 26 valuation models · updated 18 days ago
Fair value updated Jul 20, 2026, revised from $108.73 to $110.97 (+2.1%) since Jul 16, 2026. Share price +12.7% over the past month.
A solid business, but screening 11% overvalued on our models.
What matters now
- The model range is unusually wide ($53.15 to $156.96). The outcome hinges heavily on assumptions, so read the point estimate with caution.
- Our model range runs from $53.15 (bear) to $156.96 (bull), base $110.97. The closer the price sits to the lower half, the larger the margin of safety.
- Quality 64/100 (solid quality) with medium evidence: read the verdict with care.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 20, 2026.
How to read this chart
60‑month range $41.32 – $126.46 · fair‑value band $53.15 – $156.96 · the $124.82 price screens above the $110.97 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 20, 2026.
Analysis
Encompass Health Corporation (EHC) currently trades at $124.82, while our model-based Fair Value estimate is $110.97, implying the stock looks roughly 11.1% overvalued today. We read business quality at 64/100 (solid quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).
Over the trailing twelve months, Encompass Health Corporation 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 Jul 20, 2026
Our scenario range runs from $53.15 (bear case) to $156.96 (bull case); at $124.82, 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 2% below its 52-week high and 35% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at 11% fair-value upside, at -11%, EHC screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.
All 26 models by family
Widest divergence: Multiples ($114.15) versus Dividend Discount ($11.54). Highest evidence: Growth DCF (80).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 20, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 59 · Market factors (momentum, volatility) 70
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.
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 Corporation 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.
EHC screens 11% overvalued. Compare with HCA Healthcare, Inc →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Outpatient & Specialty Care Stocks Q1 Results: Benchmarking Encompass Health (NYSE:EHC)
- Encompass Health increases and declares dividend on common stock
- Is Encompass Health (EHC) an Attractive Long-Term Bet?
- Encompass Health announces date of 2026 second quarter earnings call
Peer Group
Medical Care Facilities · 262 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
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: 44/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Medical Care Facilities stocks, each showing price versus our Fair Value estimate (as of Jul 20, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| HCA Healthcare, Inc HCA | $378.85 | $554.93 | +46% |
| Fresenius SE FRE | €41.73 | €32.15 | -23% |
| Dr. Sulaiman Al Habib Medical Services Group 4013 | 235.00 SAR | 112.37 SAR | -52% |
| IHH Healthcare Berhad, an investment holding company, Q0F | 2.76 SGD | 1.28 SGD | -54% |
| Tenet Healthcare Corporation THC | $194.91 | $338.05 | +73% |
| Rede D'Or São Luiz S.A RDOR3 | R$36.01 | R$47.31 | +31% |
| DaVita Inc DVA | $231.61 | $255.97 | +11% |
| Apollo Hospitals Enterprise Limited APOLLOHOSP | ₹8,955 | ₹2,955 | -67% |
| Fresenius Medical Care AG FMS | $24.68 | $45.60 | +85% |
| Aier Eye Hospital Group 300015 | ¥8.68 | ¥7.67 | -12% |
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Frequently asked questions
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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