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.
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.
Encompass HealthMEX:EHC 76 Peter Lynch Fair Value is MXN907.44 as of Jul. 17, 2026, which is 100% below its 10-year median of 1.43. GuruFocus rates MEX:EHC with a GF Score™ of 76/100 and a GF Value™ of MXN1,970.57 (Fairly Valued). The stock has 1 warning sign investors should review. Among 169 Healthcare Providers & Services companies, Encompass Health ranks worse than 66.27% on this metric.
Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Here, as of today, Encompass Health's PEG is 1. Encompass Health's 5-Year TTM EBITDA Growth Rate is 8.72.
Encompass Health's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2026 was MXN104.06. Therefore, the Peter Lynch Fair Value for today is MXN907.44.
As of today (2026-07-17), Encompass Health's share price is MXN1930.00. Encompass Health's Peter Lynch fair value is MXN907.44. Therefore, Encompass Health's Price to Peter Lynch Fair Value Ratio for today is 2.13.
The historical rank and industry rank for Encompass Health's Peter Lynch Fair Value or its related term are showing as below:
MEX:EHC'
s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.9 Med: 1.43 Max: 4.04
Current: 1.72
During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of Encompass Health was 4.04. The lowest was 0.90. And the median was 1.43.
MEX:EHC's Price-to-Peter-Lynch-Fair-Value is ranked worse than 66.27% of 169
companies
in the Healthcare Providers & Services industry
Industry Median: 1.15
vs MEX:EHC: 1.72
Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.
Encompass Health (MEX:EHC) Peter Lynch Fair Value Explanation
Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.
Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.
Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of EBITDA per share over the past 5 years, which is 8.72 instead of 15 in this case.
Encompass Health's Price to Peter Lynch Fair Value Ratio for today is calculated as
Price to Peter Lynch Fair Value
=
Share Price
/
Peter Lynch Fair Value
=
1930.00
/
907.44
=
2.13
* 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 Peter Lynch Fair Value Related Terms
Encompass Health Peter Lynch Fair Value Historical Data
* Premium members only.
The historical data trend for Encompass Health's Peter Lynch Fair Value 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: Peter Lynch Fair Value Comparison
For the Medical Care Facilities subindustry, Encompass Health's Price-to-Peter-Lynch-Fair-Value, along with its competitors' market caps and Price-to-Peter-Lynch-Fair-Value 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-Peter-Lynch-Fair-Value vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Encompass Health's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:
* The bar in red indicates where Encompass Health's Price-to-Peter-Lynch-Fair-Value falls into.
Encompass Health's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was MXN104.06.
* 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.
** Please be aware that the 5-Year TTM EBITDA Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data adds up the quarterly data reported by the company within the most recent 12 months. For companies that report semi-annually, annually, or do not have enough quarterly data, GuruFocus uses the annual data as the TTM data.
If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.
If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.
What does a Peter Lynch Fair Value of MXN907.44 mean?
Encompass Health (MEX:EHC) has a Peter Lynch Fair Value of MXN907.44 as of Jul. 17, 2026. Peter Lynch Fair Value is the stock value based on a company's current earnings and five-year earnings growth, assuming a PEG of one. View historical data on Encompass Health and its competitors. This is 63357% above median its historical median of 1.43. Over the past decade, Encompass Health's Peter Lynch Fair Value has ranged from 0.90 to 4.04. According to the industry distribution chart, Encompass Health ranks #112 out of 169 companies in the Healthcare Providers & Services industry, placing it in the top 66.3%.
Is Encompass Health's Peter Lynch Fair Value too high?
Encompass Health's current Peter Lynch Fair Value of MXN907.44 is 63357% above median its 10-year median of 1.43. Over the past 10 years, this metric has ranged from a low of 0.90 to a high of 4.04. Based on the distribution chart, Encompass Health ranks #112 out of 169 companies in the Healthcare Providers & Services industry, which is below the industry midpoint. Overall, Encompass Health has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Encompass Health's Peter Lynch Fair Value compare to ENSG and UHS?
According to the Healthcare Providers & Services industry distribution chart, Encompass Health ranks #112 out of 169 companies for Peter Lynch Fair Value. This places Encompass Health in the lower half of its industry. The industry median Peter Lynch Fair Value is 1.15. Historically, Encompass Health's own Peter Lynch Fair Value has ranged from 0.90 to 4.04 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 Peter Lynch Fair Value for a Healthcare Providers & Services company?
The median Peter Lynch Fair Value among Healthcare Providers & Services companies is 1.15, based on 169 companies in the industry. Companies in the top quartile (top 25%) have a Peter Lynch Fair Value significantly above this median, while those in the bottom quartile fall well below. However, Peter Lynch Fair Value 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 Peter Lynch Fair Value mean?
A high Peter Lynch Fair Value can signal that a stock is expensive relative to its fundamentals. Peter Lynch Fair Value is the stock value based on a company's current earnings and five-year earnings growth, assuming a PEG of one. View historical data on Encompass Health and its competitors. For the Healthcare Providers & Services industry, the median Peter Lynch Fair Value is 1.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encompass Health's current Peter Lynch Fair Value is MXN907.44, which is 63357% above median its own 10-year median of 1.43. 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 MXN1,970.57, compared to a current price of MXN1,930.00 — trading 2.1% below its estimated fair value. The current Peter Lynch Fair Value is MXN907.44, which is 63357% above median its 10-year median of 1.43. Encompass Health's overall GF Score™ is 76/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Peter Lynch Fair Value calculated?
Peter Lynch Fair Value is calculated from a company's financial statements. For Encompass Health (MEX:EHC), the current Peter Lynch Fair Value is MXN907.44 as of Jul. 17, 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 2.1% below its estimated GF Value™ of MXN1,970.57.
GuruFocus considers Encompass Health to be Fairly Valued.
Key valuation signals for MEX:EHC:
Peter Lynch Fair Value: MXN907.44 (63357% above median its 10-year median of 1.43)
GF Value™: MXN1,970.57 vs. price of MXN1,930.00 (2.1% 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.
76GF Score
Get the complete analysis for MEX:EHC
Peter Lynch Fair Value is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:EHC has been successfully added to your 
