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Encompass HealthEHC +12.88%90 EV-to-OCF is 13.15 as of Aug. 06, 2026, which is 5% above its 10-year median of 12.51. 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 682 Healthcare Providers & Services companies, Encompass Health ranks worse than 62.32% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Encompass Health's Enterprise Value is $15,942 Mil.
Encompass Health's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was $1,213 Mil. Therefore, Encompass Health's EV-to-OCF for today is 13.15.
The historical rank and industry rank for Encompass Health's EV-to-OCF or its related term are showing as below:
EHC'
s EV-to-OCF Range Over the Past 10 Years
Min: 9.74 Med: 12.51 Max: 19.26
Current: 13.15
During the past 13 years, the highest EV-to-OCF of Encompass Health was 19.26. The lowest was 9.74. And the median was 12.51.
EHC's EV-to-OCF is ranked worse than 62.32% of 682
companies
in the Healthcare Providers & Services industry
Industry Median: 8.87
vs EHC: 13.15
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 $125.18.
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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Encompass Health EV-to-OCF Related Terms
Encompass Health EV-to-OCF Historical Data
* Premium members only.
The historical data trend for Encompass Health's EV-to-OCF 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-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Encompass Health's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Encompass Health's EV-to-OCF falls into.
Encompass Health's current Enterprise Value is $15,942 Mil.
Encompass Health's Cash Flow from Operations 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 $1,213 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-OCF of 13.15 as of Aug. 06, 2026. This is near median its historical median of 12.51. Over the past decade, Encompass Health's EV-to-OCF has ranged from 9.74 to 19.26. According to the industry distribution chart, Encompass Health ranks #425 out of 682 companies in the Healthcare Providers & Services industry, placing it in the top 62.3%.
Is Encompass Health's EV-to-OCF too high?
Encompass Health's current EV-to-OCF of 13.15 is near median its 10-year median of 12.51. Over the past 10 years, this metric has ranged from a low of 9.74 to a high of 19.26. The Healthcare Providers & Services industry median EV-to-OCF is 8.87. Encompass Health's value of 13.15 is 48.3% above this industry median. Based on the distribution chart, Encompass Health ranks #425 out of 682 companies in the Healthcare Providers & Services industry, which is below 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-OCF compare to ENSG and UHS?
According to the Healthcare Providers & Services industry distribution chart, Encompass Health ranks #425 out of 682 companies for EV-to-OCF. This places Encompass Health in the lower half of its industry. The industry median EV-to-OCF is 8.87. Encompass Health's value of 13.15 is 48.3% above this benchmark. Historically, Encompass Health's own EV-to-OCF has ranged from 9.74 to 19.26 over the past decade. While the company's 10-year median is 12.51 vs. the industry median of 8.87, Encompass Health has consistently been above 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-OCF for a Healthcare Providers & Services company?
The median EV-to-OCF among Healthcare Providers & Services companies is 8.87, based on 682 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encompass Health's current EV-to-OCF of 13.15 is 48.3% above 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Healthcare Providers & Services industry, the median EV-to-OCF is 8.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encompass Health's current EV-to-OCF is 13.15, which is near median its own 10-year median of 12.51. 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 $125.18 — trading 11% above its estimated fair value. The current EV-to-OCF is 13.15, which is near median its 10-year median of 12.51 and 48.3% above the Healthcare Providers & Services industry median of 8.87. 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-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Encompass Health (EHC), the current EV-to-OCF is 13.15 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 $125.18 is trading 11% above its estimated GF Value™ of $112.78.
GuruFocus considers Encompass Health to be Modestly Overvalued.
Key valuation signals for EHC:
EV-to-OCF: 13.15 (near median its 10-year median of 12.51)
GF Value™: $112.78 vs. price of $125.18 (11% above fair value)
Industry Position: 48.3% above the Healthcare Providers & Services median (#425 of 682)
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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