EHC (Encompass Health) Cyclically Adjusted PB Ratio: (As of Aug. 06, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

EHC Encompass Health Corp EHC
90 GF Score
Price $124.19
GF Value $112.78
Valuation Fairly Valued
! 1 Warning Sign
View Full Analysis

What is Encompass Health Cyclically Adjusted PB Ratio?

Note: If the price history is too short, we do not calculate current Cyclically Adjusted PB Ratio for this stock. All the historical data is shown as the company's primary share's data instead.

Shiller PE for Stocks: The True Measure of Stock Valuation


Encompass Health  (NYSE:EHC) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Encompass Health Cyclically Adjusted PB Ratio Related Terms


Encompass Health Cyclically Adjusted PB Ratio Historical Data

* Premium members only.

The historical data trend for Encompass Health's Cyclically Adjusted PB Ratio 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.

Encompass Health Cyclically Adjusted PB Ratio Chart

Encompass Health Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.98 4.80 4.77 5.90 6.07

Encompass Health Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Cyclically Adjusted PB Ratio 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 7.35 7.40 6.07 5.31 0.00

EHC vs ENSG, UHS, PACS: Cyclically Adjusted PB Ratio Comparison

For the Medical Care Facilities subindustry, Encompass Health's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio 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 Cyclically Adjusted PB Ratio vs Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Encompass Health's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Encompass Health's Cyclically Adjusted PB Ratio falls into.


EHC
90GF Score
Encompass Health Corp EHC
Cyclically Adjusted PB Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Encompass Health Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Encompass Health's Cyclically Adjusted Book per Share for the quarter that ended in Jun. 2026 is calculated as:

For example, Encompass Health's adjusted Book Value per Share data for the three months ended in Jun. 2026 was:

Adj_Book=Book Value per Share/CPI of Jun. 2026 (Change)*Current CPI (Jun. 2026)
=25.977/333.9520*333.9520
=25.977

Current CPI (Jun. 2026) = 333.9520.

Encompass Health Quarterly Data

Book Value per Share CPI Adj_Book
201609 8.088 241.428 11.188
201612 8.275 241.432 11.446
201703 8.712 243.801 11.933
201706 11.182 244.955 15.245
201709 11.561 246.819 15.642
201712 11.724 246.524 15.882
201803 12.115 249.554 16.212
201806 12.689 251.989 16.816
201809 13.332 252.439 17.637
201812 12.906 251.233 17.155
201903 13.262 254.202 17.423
201906 12.934 256.143 16.863
201909 13.520 256.759 17.585
201912 13.715 256.974 17.823
202003 14.525 258.115 18.793
202006 14.709 257.797 19.054
202009 15.300 260.280 19.631
202012 15.975 260.474 20.481
202103 16.617 264.877 20.950
202106 17.709 271.696 21.767
202109 18.520 274.310 22.547
202112 19.211 278.802 23.011
202203 19.775 287.504 22.970
202206 20.070 296.311 22.620
202209 12.194 296.808 13.720
202212 13.131 296.797 14.775
202303 13.807 301.836 15.276
202306 14.724 305.109 16.116
202309 15.573 307.789 16.897
202312 16.433 306.746 17.890
202403 17.300 312.332 18.498
202406 18.266 314.175 19.416
202409 19.442 315.301 20.592
202412 20.511 315.605 21.703
202503 21.398 319.799 22.345
202506 22.598 322.561 23.396
202509 23.567 324.800 24.231
202512 24.383 324.054 25.128
202603 25.365 330.213 25.652
202606 25.977 333.952 25.977

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book 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.

Is Encompass Health (EHC) Overvalued in 2026?

Based on GuruFocus' analysis, Encompass Health stock appears to be overvalued. The current stock price of $124.19 is trading 10.1% above its estimated GF Value™ of $112.78. GuruFocus considers Encompass Health to be Fairly Valued.

Key valuation signals for EHC:

  • Cyclically Adjusted PB Ratio:
  • GF Value™: $112.78 vs. price of $124.19 (10.1% above fair value)
  • GF Score™: 90/100 with 1 warning sign

No single metric tells the full story. See the EHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Encompass Health Business Description

Other Exchanges EHC:Mexico
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, which is the company's sole segment. Inpatient rehabilitation contributes the majority of the firm's revenue and provides specialized rehabilitative treatment through a network of inpatient hospitals. The company's inpatient rehabilitation hospitals provide a higher level of rehabilitative care to patients who are recovering from conditions such as stroke and other neurological disorders, cardiac and pulmonary conditions, brain and spinal cord injuries, complex orthopedic conditions, and amputations.
90GF Score

Get the complete analysis for EHC

Cyclically Adjusted PB Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$124.19
Price
$112.78
GF Value