EHC

Encompass Health Corporation

Healthcare · $12.0B market cap

Verdict

Share price

$119.80

close of Oct 3, 2026

Fair value

$175.60

Sticker Price

Payback Price

$70.24

buy price

Undervalued

EHC is Undervalued: at $119.80 it trades 32% below its fair value of $175.60. Its buy price (Payback Price) is $70.24, 41% below today's price. Business quality is mixed: 2 of 5 key numbers clear the 10% bar.

How we valued it

Owner Earnings. Earnings grow slowly (under 7% a year), but cash flow is steady, so we value it on its cash flow instead of its earnings.

Business quality

2 of 5 clear the 10% bar. What are the Big Five?

Earnings per share growth5.9% a year✗
Equity per share growth12.2% a year✓
Sales growth7.2% a year✗
Free cash flow growth2.4% a year✗
Return on invested capital16.5%✓

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Superinvestors

1 of the investors we track holds EHC. In Q2 2026, 1 trimmed. Who we track

Moves in Q2 2026

Trimmed: Jensen Investment Management

Insider activity

Since Jul 15, 2026: no open-market purchases, 6 sales worth $26.4M and 12 other filings (stock awards, tax withholding and similar). Why purchases matter

Sales

Other filings

About Encompass Health Corporation

Encompass Health Corporation delivers a range of post-acute healthcare services across the United States, offered both in dedicated facilities and directly within patients' homes. The company's operations are divided into two primary divisions: Inpatient Rehabilitation, and Home Health and Hospice. Its Inpatient Rehabilitation division specializes in providing focused recovery treatment, available on an inpatient or…

Medical - Care Facilities

Fair value and Payback Price are estimates from the company's reported financials, not investment advice. Prices as of the close of Oct 3, 2026. How the Payback Price works