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Encompass HealthEHC +14.39%90 EV-to-EBITDA is 10.74 as of Aug. 06, 2026, which is 5% above its 10-year median of 10.24. GuruFocus rates EHC with a GF Score™ of 90/100 and a GF Value™ of $112.78 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 510 Healthcare Providers & Services companies, Encompass Health ranks better than 56.08% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Encompass Health's enterprise value is $16,109 Mil.
Encompass Health's EBITDA for the trailing twelve months (TTM) ended in Jun. 2026 was $1,500 Mil. Therefore, Encompass Health's EV-to-EBITDA for today is 10.74.
The historical rank and industry rank for Encompass Health's EV-to-EBITDA or its related term are showing as below:
EHC'
s EV-to-EBITDA Range Over the Past 10 Years
Min: 7.78 Med: 10.24 Max: 14.45
Current: 10.74
During the past 13 years, the highest EV-to-EBITDA of Encompass Health was 14.45. The lowest was 7.78. And the median was 10.24.
EHC's EV-to-EBITDA is ranked better than 56.08% of 510
companies
in the Healthcare Providers & Services industry
Industry Median: 11.07
vs EHC: 10.74
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
Encompass Health (NYSE:EHC) EV-to-EBITDA Explanation
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Encompass Health's PE Ratio (TTM) for today is calculated as:
Encompass Health's share price for today is $126.86.
Encompass Health's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $6.140.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for Encompass Health's EV-to-EBITDA 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.
For the Medical Care Facilities subindustry, Encompass Health's EV-to-EBITDA, along with its competitors' market caps and EV-to-EBITDA 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 EV-to-EBITDA vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Encompass Health's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Encompass Health's EV-to-EBITDA falls into.
Encompass Health's current Enterprise Value is $16,109 Mil.
Encompass Health's EBITDA for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,500 Mil.
* 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 (EHC) has a EV-to-EBITDA of 10.74 as of Aug. 06, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Encompass Health. This is near median its historical median of 10.24. Over the past decade, Encompass Health's EV-to-EBITDA has ranged from 7.78 to 14.45. According to the industry distribution chart, Encompass Health ranks #224 out of 510 companies in the Healthcare Providers & Services industry, placing it in the top 43.9%.
Is Encompass Health's EV-to-EBITDA too high?
Encompass Health's current EV-to-EBITDA of 10.74 is near median its 10-year median of 10.24. Over the past 10 years, this metric has ranged from a low of 7.78 to a high of 14.45. The Healthcare Providers & Services industry median EV-to-EBITDA is 11.07. Encompass Health's value of 10.74 is 3% below this industry median. Based on the distribution chart, Encompass Health ranks #224 out of 510 companies in the Healthcare Providers & Services industry, which is above the industry midpoint. Overall, Encompass Health has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Encompass Health's EV-to-EBITDA compare to ENSG and UHS?
According to the Healthcare Providers & Services industry distribution chart, Encompass Health ranks #224 out of 510 companies for EV-to-EBITDA. This puts Encompass Health in the upper half of its industry. The industry median EV-to-EBITDA is 11.07. Encompass Health's value of 10.74 is 3% below this benchmark. Historically, Encompass Health's own EV-to-EBITDA has ranged from 7.78 to 14.45 over the past decade. While the company's 10-year median is 10.24 vs. the industry median of 11.07, Encompass Health has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBITDA for a Healthcare Providers & Services company?
The median EV-to-EBITDA among Healthcare Providers & Services companies is 11.07, based on 510 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encompass Health's current EV-to-EBITDA of 10.74 is 3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Encompass Health. For the Healthcare Providers & Services industry, the median EV-to-EBITDA is 11.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encompass Health's current EV-to-EBITDA is 10.74, which is near median its own 10-year median of 10.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Encompass Health stock overvalued right now?
Based on GuruFocus' analysis, Encompass Health (EHC) is currently considered Modestly Overvalued. The stock's GF Value™ is $112.78, compared to a current price of $126.86 — trading 12.5% above its estimated fair value. The current EV-to-EBITDA is 10.74, which is near median its 10-year median of 10.24 and 3% below the Healthcare Providers & Services industry median of 11.07. Encompass Health's overall GF Score™ is 90/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Encompass Health (EHC), the current EV-to-EBITDA is 10.74 as of Aug. 06, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Encompass Health (EHC) Overvalued in 2026?
Based on GuruFocus' analysis, Encompass Health stock appears to be overvalued.
The current stock price of $126.86 is trading 12.5% above its estimated GF Value™ of $112.78.
GuruFocus considers Encompass Health to be Modestly Overvalued.
Key valuation signals for EHC:
EV-to-EBITDA: 10.74 (near median its 10-year median of 10.24)
GF Value™: $112.78 vs. price of $126.86 (12.5% above fair value)
Industry Position: 3% below the Healthcare Providers & Services median (#224 of 510)
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 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.
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