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Encompass Health (FRA:HSOA) Cyclically Adjusted FCF per Share : €3.25 (As of Mar. 2024)


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What is Encompass Health Cyclically Adjusted FCF per Share?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

Encompass Health's adjusted free cash flow per share for the three months ended in Mar. 2024 was €0.895. Add all the adjusted free cash flow per share for the past 10 years together and divide the count will get our Cyclically Adjusted FCF per Share, which is €3.25 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Encompass Health's average Cyclically Adjusted FCF Growth Rate was 2.20% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 2.60% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 1.80% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 9.00% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted FCF Growth Rate using Cyclically Adjusted FCF per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted FCF Growth Rate of Encompass Health was 58.00% per year. The lowest was -8.60% per year. And the median was 11.60% per year.

As of today (2024-05-21), Encompass Health's current stock price is €78.00. Encompass Health's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was €3.25. Encompass Health's Cyclically Adjusted Price-to-FCF of today is 24.00.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Encompass Health was 22.89. The lowest was 10.40. And the median was 16.22.


Encompass Health Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Encompass Health's Cyclically Adjusted FCF per Share can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Encompass Health Cyclically Adjusted FCF per Share Chart

Encompass Health Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.99 2.75 3.15 3.35 3.30

Encompass Health Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted FCF per Share Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.28 3.38 3.56 3.30 3.25

Competitive Comparison of Encompass Health's Cyclically Adjusted FCF per Share

For the Medical Care Facilities subindustry, Encompass Health's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Encompass Health's Cyclically Adjusted Price-to-FCF Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Encompass Health's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Encompass Health's Cyclically Adjusted Price-to-FCF falls into.



Encompass Health Cyclically Adjusted FCF per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

What is Cyclically Adjusted FCF per Share? How do we calculate Cyclically Adjusted FCF per Share?

Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted FCF per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the free cash flow per share from 2001 through 2010.

We adjusted the 2001 free cash flow per share data with the total inflation from 2001 through 2010 to the equivalent free cash flow in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's free cash flow is $1 a share in 2001, then the 2001's equivalent free cash flow in 2010 is $1.4 a share. If Wal-Mart's free cash flow is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 free cash flow in 2010 is $1.35. So on and so forth, you get the equivalent free cash flow per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Encompass Health's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=0.895/131.7762*131.7762
=0.895

Current CPI (Mar. 2024) = 131.7762.

Encompass Health Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.667 100.560 0.874
201409 0.723 100.428 0.949
201412 0.232 99.070 0.309
201503 0.689 99.621 0.911
201506 0.597 100.684 0.781
201509 1.044 100.392 1.370
201512 0.765 99.792 1.010
201603 1.179 100.470 1.546
201606 0.937 101.688 1.214
201609 1.190 101.861 1.539
201612 0.660 101.863 0.854
201703 1.318 102.862 1.688
201706 0.745 103.349 0.950
201709 0.968 104.136 1.225
201712 0.617 104.011 0.782
201803 1.276 105.290 1.597
201806 0.951 106.317 1.179
201809 1.134 106.507 1.403
201812 0.763 105.998 0.949
201903 0.778 107.251 0.956
201906 0.493 108.070 0.601
201909 0.070 108.329 0.085
201912 0.732 108.420 0.890
202003 -0.492 108.902 -0.595
202006 1.198 108.767 1.451
202009 0.701 109.815 0.841
202012 1.125 109.897 1.349
202103 0.500 111.754 0.590
202106 1.093 114.631 1.256
202109 0.476 115.734 0.542
202112 -0.684 117.630 -0.766
202203 0.961 121.301 1.044
202206 1.244 125.017 1.311
202209 -0.796 125.227 -0.838
202212 -0.347 125.222 -0.365
202303 1.186 127.348 1.227
202306 0.846 128.729 0.866
202309 0.633 129.860 0.642
202312 -0.194 129.419 -0.198
202403 0.895 131.776 0.895

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.


Encompass Health  (FRA:HSOA) Cyclically Adjusted FCF per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted FCF per Share may underestimate the company's free cash flow. Cyclically Adjusted Price-to-FCF can seem to be too high even the actual Price-to-Free-Cash-Flow is low.

For the Cyclically Adjusted Price-to-FCF, the free cash flow per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/FCF calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted Price-to-FCF is also called CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Encompass Health's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=78.00/3.25
=24.00

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Encompass Health was 22.89. The lowest was 10.40. And the median was 16.22.


Be Aware

Cyclically Adjusted Price-to-FCF works better for cyclical companies. It gives you a better idea on the company's real free cash flow value.


Encompass Health Cyclically Adjusted FCF per Share Related Terms

Thank you for viewing the detailed overview of Encompass Health's Cyclically Adjusted FCF per Share provided by GuruFocus.com. Please click on the following links to see related term pages.


Encompass Health (FRA:HSOA) Business Description

Traded in Other Exchanges
Address
9001 Liberty Parkway, Birmingham, AL, USA, 35242
Encompass Health Corp provides post-acute healthcare services in the United States through a network of inpatient rehabilitation hospitals. Inpatient rehabilitation contributes the majority of the firm's revenue and provides specialized rehabilitative treatment through a network of inpatient hospitals. These hospitals are concentrated in the eastern half of the United States and Texas.

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