Encompass Health Corporation (EHC) Stock Analysis
Over the past 10 years, Encompass Health (EHC) earnings per share (EPS) grew 10.8% a year, revenue grew 6.7% a year and free cash flow grew 3.0% a year, with an average return on invested capital (ROIC) of 11.0%. EHC stock trades at $123.33, a P/E of 21.0, above its historical average of 18.9. Analysts' average 12-month price target is $150.20 (+21.8%).
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.
Exhibit A Growth Dossier
| Metric | 10yr | 5yr | 1yr | Grade |
|---|---|---|---|---|
| Book Value/Share GrowthBV/S | 14.7% | 8.4% | 16.4% | A- |
| EPS GrowthEPS | 10.8% | 14.4% | 12.9% | A- |
| Revenue GrowthRevenue | 6.7% | 10.7% | 9.5% | B |
| Cash Flow GrowthCash Flow | 3.0% | 8.2% | -5.9% | C- |
| ROICROIC | 11.0% | 13.5% | 13.3% | A- |
Exhibit B Valuation Ledger
- Current EPS
- $5.86
- Historical Avg P/E
- 18.9
- Future P/E (used for sticker price)
- Projected EPS (10yr)
- Sticker Price (10yr)
- Price for 15% Annual Return
- Expected Annual Return
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Not investment advice — a structured read of historical fundamentals, not a forecast or recommendation. Always do your own research.
Exhibit C Raw Data (last 10 years)
| Metric | Trend | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Book Value / ShareBV/S | $6.05 | $7.40 | $11.90 | $13.32 | $13.60 | $15.91 | $19.07 | $13.05 | $16.26 | $20.23 | $23.86 | $25.98 | |
| Basic EPSEPS | $2.02 | $2.77 | $2.73 | $2.99 | $3.65 | $2.87 | $4.15 | $2.72 | $3.54 | $4.53 | $5.62 | $5.86 | |
| RevenueRevenue | $3,115,700,000 | $3,642,600,000 | $3,913,900,000 | $4,277,300,000 | $4,605,000,000 | $3,566,300,000 | $4,014,900,000 | $4,348,600,000 | $4,801,200,000 | $5,373,200,000 | $5,935,200,000 | $6,206,100,000 | |
| Free Cash FlowCash Flow | $328,300,000 | $402,600,000 | $412,200,000 | $491,900,000 | $231,200,000 | $296,500,000 | $164,600,000 | $121,700,000 | $267,700,000 | $360,300,000 | $439,200,000 | $413,399,999 | |
| ROIC (%)ROIC | 8.4% | 10.1% | 10.4% | 11.3% | 10.1% | 0.0% | 8.5% | 9.6% | 24.6% | 11.8% | 13.3% | — |
The exact underlying data used to compute the growth rates and grades above. The highlighted TTM column is the trailing twelve months through the most recently reported quarter.
Ticker INVESTigator Price Target
Analyst Data
Price Target
Where the stock trades today vs. the range of 12-month price targets from covering analysts.
27 firms rate it — 1 strong buy, 21 buy, 4 hold, 1 sell · Most recent Sep 2026
EHC Stock FAQ
What is EHC's stock price target?
The average 12-month analyst price target for EHC is $150.20, with a range of $144.00 to $155.00. That is +21.8% from the current price of $123.33.
Do analysts rate EHC a buy?
Most rate it a buy. Of 27 firms covering Encompass Health, the ratings are 22 buy or strong buy, 4 hold and 1 sell or strong sell.
How fast is Encompass Health growing?
Annual growth rates for EHC. EPS: 10.8% over 10 years, 14.4% over 5 years, 12.9% over 1 year. Revenue: 6.7% over 10 years, 10.7% over 5 years, 9.5% over 1 year. Free cash flow: 3.0% over 10 years, 8.2% over 5 years, -5.9% over 1 year. Book value per share: 14.7% over 10 years, 8.4% over 5 years, 16.4% over 1 year.
What is EHC's ROIC?
Encompass Health's return on invested capital (ROIC) was 13.3% in fiscal 2025. Its 10-year average ROIC is 11.0%. ROIC above 10% is generally a sign of a business with a durable competitive advantage.
What is EHC's P/E ratio?
EHC's current P/E ratio is 21.0, compared with a historical average of 18.9. Trailing earnings per share are $5.86.
What is Encompass Health's market cap and stock price?
EHC last traded at $123.33 as of October 10, 2026. Its 52-week range is $92.77 to $127.99. Encompass Health has a market cap of $12.23B.
Exhibit D Related Coverage
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Data as of October 10, 2026. Findings are derived from historical fundamentals — not a forecast, not advice. Cross-examine before you invest.
Grades are produced by Ticker INVESTigator's own model from public financial data and are for informational and educational purposes only. They are not investment advice or a recommendation to buy or sell any security. Do your own research.