Encompass Health Corp
EHCdata completeness 88%18 fiscal years on fileEncompass Health Corp earns about 33% on invested capital, far above its ~9% cost of capital, with a roughly flat share count — a real edge showing up in the numbers. The estimate methods put fair value between $41.8 and $210.97 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.
| Figure | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|---|
| Revenue | $4.01B1 | $4.35B2 | $4.8B3 | $5.37B3 | $5.94B3 |
| Net income | $412.2M4 | $271M5 | $352M6 | $455.7M6 | $566.2M6 |
| Operating cash flow | $715.8M7 | $705.8M7 | $850.8M8 | $1B8 | $1.18B8 |
| Capital expenditure | $524.6M9 | $564.8M9 | $583.1M10 | $642.5M10 | $736.4M10 |
| Free cash flow (derived) | $191.2M7 | $141M7 | $267.7M8 | $360.3M8 | $439.2M8 |
| Total debt | — | — | — | — | — |
| Cash & equivalents | $49.4M11 | $21.8M12 | $69.1M12 | $85.4M12 | $72.2M12 |
| Diluted shares | 100.2M | 100.4M | 101.3M | 102.2M | 102.2M |
Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).
10 shares is a claim on $238.57 of net worth that earned you $55.4 and generated $42.97 of cash last year.
It earned about 33% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.
seeing a moat in the numbers →Share count is roughly flat over 5 years — little dilution, little buyback.
reading capital allocation →Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.
The 3 estimate methods that apply put fair value between $41.8 and $210.97 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.
assumptions (10)
- riskFreeRate4.7%
- equityRiskPremium5.0%
- beta100.0%
- equityWeight85.0%
- costOfDebtSpread1.5%
- taxRate21.0%
- terminalGrowth2.5%
- projectionYears10
- fcfGrowth20.0%
- fcfBase$360.3M
assumptions (10)
- riskFreeRate4.7%
- equityRiskPremium5.0%
- beta100.0%
- equityWeight85.0%
- costOfDebtSpread1.5%
- taxRate21.0%
- terminalGrowth2.5%
- projectionYears5
- fcfGrowth20.0%
- fcfBase$360.3M
assumptions (8)
- riskFreeRate4.7%
- equityRiskPremium5.0%
- beta100.0%
- equityWeight85.0%
- costOfDebtSpread1.5%
- taxRate21.0%
- normalizedEarnings$412.2M
- growthAssumed0.0%
assumptions (1)
- grahamMultiplier2250.0%
Different models answer different questions — which to trust when →
| Bear | 0.0% | $51.08 |
| Base | 20.0% | $115.65 |
| Bull | 20.0% | $115.65 |
Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.
Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.
- 10-K · period ending 2021-12-31 · accession 0000785161-24-000009 (RevenueFromContractWithCustomerExcludingAssessedTax)
- 10-K · period ending 2022-12-31 · accession 0000785161-25-000009 (RevenueFromContractWithCustomerExcludingAssessedTax)
- 10-K · period ending 2023-12-31 · accession 0000785161-26-000081 (RevenueFromContractWithCustomerExcludingAssessedTax)
- 10-K · period ending 2021-12-31 · accession 0000785161-24-000009 (NetIncomeLoss)
- 10-K · period ending 2022-12-31 · accession 0000785161-25-000009 (NetIncomeLoss)
- 10-K · period ending 2023-12-31 · accession 0000785161-26-000081 (NetIncomeLoss)
- 10-K · period ending 2021-12-31 · accession 0000785161-23-000012 (NetCashProvidedByUsedInOperatingActivities)
- 10-K · period ending 2023-12-31 · accession 0000785161-26-000081 (NetCashProvidedByUsedInOperatingActivitiesContinuingOperations)
- 10-K · period ending 2021-12-31 · accession 0000785161-23-000012 (PaymentsToAcquirePropertyPlantAndEquipment)
- 10-K · period ending 2023-12-31 · accession 0000785161-26-000081 (PaymentsToAcquireProductiveAssets)
- 10-K · period ending 2021-12-31 · accession 0000785161-25-000009 (CashAndCashEquivalentsAtCarryingValue)
- 10-K · period ending 2022-12-31 · accession 0000785161-26-000081 (CashAndCashEquivalentsAtCarryingValue)