Encompass Health Valuation
| EHC Stock | USD 102.84 0.93 0.90% |
At this time, the firm appears to be overvalued. Encompass Health Corp shows a prevailing Real Value of $74.04 per share. The current price of the firm is $102.84. Our model computes the value of Encompass Health Corp from reviewing the firm fundamentals such as Operating Margin of 0.15 %, current valuation of 13.01 B, and Profit Margin of 0.08 % as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Encompass Health's valuation include:
Price Book 5.2868 | Enterprise Value 13 B | Enterprise Value Ebitda 11.3748 | Price Sales 1.9868 | Forward PE 21.5054 |
Overvalued
Today
Please note that Encompass Health's price fluctuation is very steady at this time. Calculation of the real value of Encompass Health Corp is based on 3 months time horizon. Increasing Encompass Health's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Encompass Health is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Encompass Stock. However, Encompass Health's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 102.84 | Real 74.04 | Target 81.89 | Hype 102.84 | Naive 102.73 |
The real value of Encompass Stock, also known as its intrinsic value, is the underlying worth of Encompass Health Corp Company, which is reflected in its stock price. It is based on Encompass Health's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Encompass Health's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Encompass Health Corp helps investors to forecast how Encompass stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Encompass Health more accurately as focusing exclusively on Encompass Health's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Encompass Health's intrinsic value based on its ongoing forecasts of Encompass Health's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Encompass Health's closest peers. If more than one evaluation category is relevant for Encompass Health we suggest using both methods to arrive at a better estimate.
Encompass Health Cash |
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Encompass Valuation Trend
Comparing Encompass Health's enterprise value against its market capitalization is a good way to estimate the value of Encompass Health Corp uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
Encompass Revenue by Product
Encompass Health Total Value Analysis
Encompass Health Corp is currently forecasted to have company total value of 13.01 B with market capitalization of 10.36 B, debt of 2.93 B, and cash on hands of 21.8 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Encompass Health fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
13.01 B | 10.36 B | 2.93 B | 21.8 M |
Encompass Health Investor Information
About 98.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.37. Encompass Health Corp last dividend was issued on the 2nd of January 2025. The entity had 1257:1000 split on the 1st of July 2022. Based on the key indicators obtained from Encompass Health's historical financial statements, Encompass Health Corp is not in a good financial situation at this time. It has a very high probability of going through financial hardship in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.14 | 0.1524 |
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| Total Cash From Operating Activities | 463.2 M | 850.8 M |
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Encompass Health Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Encompass Health has an asset utilization ratio of 78.68 percent. This indicates that the Company is making $0.79 for each dollar of assets. An increasing asset utilization means that Encompass Health Corp is more efficient with each dollar of assets it utilizes for everyday operations.Encompass Health Ownership Allocation
Encompass Health holds a total of 100.75 Million outstanding shares. The majority of Encompass Health Corp outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Encompass Health Corp to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Encompass Health. Please pay attention to any change in the institutional holdings of Encompass Health Corp as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Encompass Health Profitability Analysis
The company reported the last year's revenue of 4.8 B. Total Income to common stockholders was 361.6 M with profit before taxes, overhead, and interest of 1.75 B.Encompass Health Past Distributions to stockholders
| 15th of October 2024 | ||
| 15th of July 2024 | ||
| 15th of April 2024 | ||
| 16th of January 2024 | ||
| 16th of October 2023 | ||
| 17th of August 2023 | ||
| 17th of July 2023 | ||
| 17th of April 2023 | ||
| 17th of January 2023 |
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Encompass Health's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Encompass Health and how it compares across the competition.
About Encompass Health Valuation
The stock valuation mechanism determines Encompass Health's current worth on a weekly basis. Our valuation model uses a comparative analysis of Encompass Health. We calculate exposure to Encompass Health's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Encompass Health's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 933.5 M | 886.8 M | |
| Pretax Profit Margin | 0.13 | 0.13 | |
| Operating Profit Margin | 0.15 | 0.14 | |
| Net Profit Margin | 0.07 | 0.06 | |
| Gross Profit Margin | 0.19 | 0.18 |
A single share of Encompass Health represents a small ownership stake in the entity. As a stockholder of Encompass, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Encompass Health Dividends Analysis For Valuation
The current year's Dividend Payout Ratio is expected to grow to 0.19, whereas Dividends Paid is projected to grow to (57.4 M). . At present, Encompass Health's Retained Earnings Total Equity is projected to increase significantly based on the last few years of reporting. The current year's Price Earnings Ratio is expected to grow to 29.60, whereas Earnings Yield is forecasted to decline to 0.03.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -60.4 M | -57.4 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.17 | 0.19 | |
| Dividend Paid And Capex Coverage Ratio | 1.32 | 1.19 |
There are various types of dividends Encompass Health can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Encompass shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Encompass Health Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Encompass pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Encompass Health by the value of the dividends paid out.
Encompass Health Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 101.3 M | |
| Quarterly Earnings Growth Y O Y | 0.26 | |
| Forward Price Earnings | 21.5054 |
Encompass Health Current Valuation Indicators
Valuation refers to the process of determining the present value of Encompass Health Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Encompass we look at many different elements of the entity such as Encompass's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Encompass Health, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Encompass Health's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Encompass Health's worth.Complementary Tools for Encompass Stock analysis
When running Encompass Health's price analysis, check to measure Encompass Health's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Encompass Health is operating at the current time. Most of Encompass Health's value examination focuses on studying past and present price action to predict the probability of Encompass Health's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Encompass Health's price. Additionally, you may evaluate how the addition of Encompass Health to your portfolios can decrease your overall portfolio volatility.
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