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Encompass HealthMEX:EHC 75 Graham Number is MXN619.56 as of Mar. 2026, which is 100% below its 10-year median of 4.35. GuruFocus rates MEX:EHC with a GF Score™ of 75/100 and a GF Value™ of MXN1,934.30 (Fairly Valued). The stock has 1 warning sign investors should review. Among 367 Healthcare Providers & Services companies, Encompass Health ranks worse than 77.38% on this metric.
Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.
As of today (2026-07-22), the stock price of Encompass Health is MXN1930.00. Encompass Health's graham number for the quarter that ended in Mar. 2026 was MXN619.56. Therefore, Encompass Health's Price to Graham Number ratio for today is 3.12.
The historical rank and industry rank for Encompass Health's Graham Number or its related term are showing as below:
MEX:EHC'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 2.36 Med: 4.35 Max: 45.69
Current: 3.29
During the past 13 years, the highest Price to Graham Number ratio of Encompass Health was 45.69. The lowest was 2.36. And the median was 4.35.
MEX:EHC's Price-to-Graham-Number is ranked worse than 77.38% of 367
companies
in the Healthcare Providers & Services industry
Industry Median: 1.67
vs MEX:EHC: 3.29
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Encompass Health (MEX:EHC) Graham Number Explanation
Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:
Current price should not be more than 15 times average earnings of the past three years.
Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)
Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.
In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.
Encompass Health's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
1930.00
/
619.56
=
3.12
* 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.
Be Aware
Please keep these in mind:
1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.
Encompass Health Graham Number Related Terms
Encompass Health Graham Number Historical Data
* Premium members only.
The historical data trend for Encompass Health's Graham Number 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.
MEX:EHC vs ENSG, UHS, PACS: Graham Number Comparison
For the Medical Care Facilities subindustry, Encompass Health's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number 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 Price-to-Graham-Number vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Encompass Health's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Encompass Health's Price-to-Graham-Number falls into.
* 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 (MEX:EHC) has a Graham Number of MXN619.56 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Encompass Health and its competitors. This is 14143% above median its historical median of 4.35. Over the past decade, Encompass Health's Graham Number has ranged from 2.36 to 45.69. According to the industry distribution chart, Encompass Health ranks #284 out of 367 companies in the Healthcare Providers & Services industry, placing it in the top 77.4%.
Is Encompass Health's Graham Number too high?
Encompass Health's current Graham Number of MXN619.56 is 14143% above median its 10-year median of 4.35. Over the past 10 years, this metric has ranged from a low of 2.36 to a high of 45.69. Based on the distribution chart, Encompass Health ranks #284 out of 367 companies in the Healthcare Providers & Services industry, which is in the bottom quartile relative to peers. Overall, Encompass Health has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Encompass Health's Graham Number compare to ENSG and UHS?
According to the Healthcare Providers & Services industry distribution chart, Encompass Health ranks #284 out of 367 companies for Graham Number. This places Encompass Health in the lower half of its industry. The industry median Graham Number is 1.67. Historically, Encompass Health's own Graham Number has ranged from 2.36 to 45.69 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Graham Number for a Healthcare Providers & Services company?
The median Graham Number among Healthcare Providers & Services companies is 1.67, based on 367 companies in the industry. Companies in the top quartile (top 25%) have a Graham Number significantly above this median, while those in the bottom quartile fall well below. However, Graham Number should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Graham Number mean?
A high Graham Number can signal that a stock is expensive relative to its fundamentals. The Graham Number values a company based on its per-share earnings and book value. View historical data on Encompass Health and its competitors. For the Healthcare Providers & Services industry, the median Graham Number is 1.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encompass Health's current Graham Number is MXN619.56, which is 14143% above median its own 10-year median of 4.35. 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 (MEX:EHC) is currently considered Fairly Valued. The stock's GF Value™ is MXN1,934.30, compared to a current price of MXN1,930.00 — trading 0.2% below its estimated fair value. The current Graham Number is MXN619.56, which is 14143% above median its 10-year median of 4.35. Encompass Health's overall GF Score™ is 75/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Graham Number calculated?
Graham Number is calculated from a company's financial statements. For Encompass Health (MEX:EHC), the current Graham Number is MXN619.56 as of Mar. 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 (MEX:EHC) Overvalued in 2026?
Based on GuruFocus' analysis, Encompass Health stock appears to be undervalued.
The current stock price of MXN1,930.00 is trading 0.2% below its estimated GF Value™ of MXN1,934.30.
GuruFocus considers Encompass Health to be Fairly Valued.
Key valuation signals for MEX:EHC:
Graham Number: MXN619.56 (14143% above median its 10-year median of 4.35)
GF Value™: MXN1,934.30 vs. price of MXN1,930.00 (0.2% below fair value)
No single metric tells the full story. See the MEX: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.
75GF Score
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