EHC (Encompass Health) Cyclically Adjusted PB Ratio: (As of Sep. 21, 2026)

Author: Vera Yuan Vera Yuan
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Director of Data and Quant Analytics at GuruFocus
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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
91 GF Score
Price $121.75
GF Value $115.97
Valuation Fairly Valued
! 2 Warning Signs
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What is Encompass Health Cyclically Adjusted PB Ratio?

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 3.40 3.40 3.38 4.19 4.32

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 5.40 5.44 4.47 3.92 3.97

EHC vs DVA, UHS, ENSG: 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
91GF Score
Encompass Health Corp EHC
Cyclically Adjusted PB Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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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)
=35.031/333.9520*333.9520
=35.031

Current CPI (Jun. 2026) = 333.9520.

Encompass Health Quarterly Data

Book Value per Share CPI Adj_Book
201609 11.394 241.428 15.761
201612 11.998 241.432 16.596
201703 12.654 243.801 17.333
201706 15.593 244.955 21.258
201709 16.221 246.819 21.947
201712 16.442 246.524 22.273
201803 16.593 249.554 22.205
201806 17.444 251.989 23.118
201809 18.404 252.439 24.347
201812 18.384 251.233 24.437
201903 19.067 254.202 25.049
201906 19.641 256.143 25.607
201909 19.080 256.759 24.816
201912 19.603 256.974 25.475
202003 18.423 258.115 23.836
202006 18.761 257.797 24.303
202009 19.413 260.280 24.908
202012 20.135 260.474 25.815
202103 20.830 264.877 26.262
202106 22.201 271.696 27.288
202109 23.050 274.310 28.062
202112 24.115 278.802 28.885
202203 24.966 287.504 28.999
202206 25.497 296.311 28.736
202209 17.513 296.808 19.705
202212 18.660 296.797 20.996
202303 19.593 301.836 21.678
202306 20.529 305.109 22.470
202309 21.848 307.789 23.705
202312 22.914 306.746 24.946
202403 23.867 312.332 25.519
202406 25.124 314.175 26.706
202409 27.040 315.301 28.639
202412 28.273 315.605 29.917
202503 29.114 319.799 30.402
202506 30.607 322.561 31.688
202509 31.642 324.800 32.534
202512 32.759 324.054 33.760
202603 33.875 330.213 34.259
202606 35.031 333.952 35.031

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 $121.75 is trading 5% above its estimated GF Value™ of $115.97. GuruFocus considers Encompass Health to be Fairly Valued.

Key valuation signals for EHC:

  • Cyclically Adjusted PB Ratio:
  • GF Value™: $115.97 vs. price of $121.75 (5% above fair value)
  • GF Score™: 91/100 with 2 warning signs

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.
91GF 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.

$121.75
Price
$115.97
GF Value