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Stock: EHC
Book Value Per Share: $21.4
EPS: $5.565
Diluted EPS TTM: $4.86
Dividend Per Share: 0.66
Dividend Yield: 0.55 %
Dividend Payout Ratio: 12%
Price To Sales Ratio TTM: 2.211
Price To Book Ratio: 5.65
PEG Ratio: None
EV To EBITDA: 11.81
P/E Ratio: 24.83
Forward P/E Ratio: 24.75
Ex Dividend Date: 2025-07-01
Dividend Date: 2025-07-15
Current Price: $119.67
Previous Close: $118.43
52 Week Low: $82.3
52 Week High: $123.13
Earning Date (within 30 days): 2025-08-04
50 Day MA: $116.19
200 Day MA: $102.23
Link to Yahoo (Financial): EHC

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* Note: Prices are in Million (M) USD.
Description:
Encompass Health Corp (EHC) ↓
Encompass Health Corporation offers in-home and post-acute health care services in the United States. The company is headquartered in Birmingham, Alabama.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $85 M
Debt : $2,359 M
EBITDA : $1,233 M
Net Debt (Debt - Cash): $2,274 M

Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Healthcare
Industry: Medical Care

Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 21.50

Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $240 M
Average Revenue: $3,243 M
Revenue Converted To Free Cash FLow(%): 7%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 22.45%

Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $5,373 M
Revenue 4 Years Ago (2020-12-31): $4,644 M
Last 5 Years Average Revenue Growth: 3%

Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $102 M
Share Count 5 Years Ago (2020-12-31): $100 M

Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $6.04
Trailing 12-Month Earnings Per Share (EPS): $5.09
Average Earnings Per Share (EPS): $5.57
Dividend Per Share (DPS): $1
Payout Ratio: 12%
Dividend Yield: 1%

Since company Payout Ratio is less than 50, 2 points assigned.

Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 40%

Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $120
52-Week Low: $82
Threshold Price (15% Above 52-Week Low): $95

Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $12,188 M

Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 18 points to above Encompass Health Corp (EHC) stock.
Last 7 Years Avg PE (Limited to last 7 years of EPS data) 28, Fair Value PE 12, Industry Based PE is 15 and Growth based PE is 10. Based on these all values average assigned is 16.25.
Value-Trades has assined P/E value 16.25. Since an average (Current Year EPS + Next Year EPS) earning per share is $5.565.
The fair value of Encompass Health Corp (EHC) stock should be (16.25 x $5.565) = $90.43

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