Encompass Health (EHC) fundamentals: P/E, valuation, undervalued?

Encompass Health · Health Care · ref. ETF XLV · price $119.57
Logo Encompass HealthSee the full Encompass Health (EHC) profile
In short — Encompass Health trades at 20.2× earnings (P/E), 17.9× forward, with a net margin of 10.0 % and revenue growth of +10 %. Read: Fairly valued (P/E 18 in line with ~11% growth (PEG 1.7)).

Is Encompass Health stock cheap or undervalued? A good time to buy? Here are its fundamentals — P/E, PEG, margin and income statement — to judge its valuation.

📈 1-year price
$119.57-3.1% over range
Aug 28, 25low $93.83 · high $127.18Aug 27, 26
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100% recommend buying · 4 analysts
Valuation : Fairly valued — P/E 18 in line with ~11% growth (PEG 1.7)

Valuation

20.2
P/E (price/earnings)
17.9
Forward P/E
1.87
PEG
4.5
Price/book (P/B)
$11.8B
Market cap
5.93
EPS

Profitability & growth

10.0 %
Net margin
+10 %
Revenue growth
+11 %
Earnings growth
$2.8B
Total debt

Encompass Health income statement

Fiscal yearRevenueNet incomeMargin
2022$4.3B$271M6.2 %
2023$4.8B$352M7.3 %
2024$5.4B$456M8.5 %
2025$5.9B$566M9.5 %
⚠️ Indicative financial data (Yahoo Finance), not investment advice. Amounts in $.

Frequently asked questions

What is Encompass Health's P/E and is the stock undervalued? What's a good P/E?

Encompass Health's P/E is 20.2 (forward 17.9). Below ~15 = fairly cheap, above ~30 = expensive. Our valuation verdict: "Fairly valued".

Is Encompass Health profitable?

Encompass Health has a net margin of 10.0 % (EPS 5.93). The company is profitable.

Is EHC stock expensive?

Our read: "Fairly valued" — P/E 18 in line with ~11% growth (PEG 1.7). Cross-check with growth and sector.

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