Encompass Health Corporation, formerly Healthsouth, owns and operates inpatient rehabilitation hospitals in the United States. The company provides specialized rehabilitative treatment on an inpatient and outpatient basis. The company was founded in 1983 and is based in Birmingham, Alabama.
EHC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for EHC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Encompass Health Corp ranked in the 17th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for EHC, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 63. Its equity weight surpasses that of only 22.13% of free cash flow generating stocks in the Healthcare sector.
Its compound free cash flow growth rate, as measured over the past 5.42 years, is -0.06% -- higher than merely 18.15% of stocks in our DCF forecasting set.
Encompass Health Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 6.99% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ICUI, ZBH, ABC, TFX, and BHC can be thought of as valuation peers to EHC, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.
Encompass Health (EHC) priced its earlier announced underwritten public offering of $400M in principal amount of its 4.625% senior notes due 2031 at a public offering price of 100% of the principal amount.Interest will be paid semi-annually in arrears, commencing April 1, 2021.Offering expected to close on October 5.Quick look at debt...
BIRMINGHAM, Ala., Sept. 30, 2020 /PRNewswire/ -- Encompass Health Corporation (NYSE: EHC) today announced the pricing of its underwritten public offering of $400 million in aggregate principal amount of its 4.625% senior notes due 2031 at a public offering price of 100% of the principal…
BIRMINGHAM, Ala., Aug. 25, 2020 /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) and MUSC Health today announced plans to own and operate Encompass Health Rehabilitation Hospital of Charleston, Encompass Health's existing inpatient rehabilitation hospital in North Charleston, South…
BIRMINGHAM, Ala., Aug. 11, 2020 /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced it has placed land under contract and plans to build a freestanding, 50-bed inpatient rehabilitation hospital in Jacksonville, Florida, to be named Encompass Health Rehabilitation Hospital…
BIRMINGHAM, Ala., Aug. 6, 2020 /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced it has placed land under contract and plans to build a freestanding, 40-bed inpatient rehabilitation hospital in Cape Coral, Florida, to be named Encompass Health Rehabilitation Hospital of…