What is Encompass Health Corp worth?
With the base-case assumptions below, a discounted cash flow model on Encompass Health Corp's reported free cash flow gives $83.76 per share. The share price was $123.47 on September 25, 2026, 47% above that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | 5.5% | 10.0% | $42.64 | -65% |
| Base | 10.5% | 9.0% | $83.76 | -32% |
| Bull | 15.5% | 8.0% | $165.70 | +34% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $114.86 | $124.45 | $136.18 | $150.83 | $169.67 |
| 8.0% | $91.57 | $97.79 | $105.15 | $113.97 | $124.75 |
| 9.0% | $74.59 | $78.85 | $83.76 | $89.48 | $96.25 |
| 10.0% | $61.69 | $64.71 | $68.14 | $72.06 | $76.58 |
| 11.0% | $51.57 | $53.78 | $56.26 | $59.05 | $62.21 |
Where the presets come from
Base: years 1 to 5 grow at Encompass Health Corp's revenue growth rate over the last 5 fiscal years (10.7% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions