Encompass Fair Value
EH
The fair market value of EHC stock is 84.19 USD. Relative to the market price of 102.61 USD Encompass is overvalued by 18%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Encompass Valuation
Current EHC share ticker price is 102.61 USD.
The fair value level of 84.19 USD can be considered as an effective entry point for long-term investors to start investing in EHC stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 18% higher its fair value
Current price is 28% higher its minimum value
Current price is 3% higher its maximum value
Market price:
EHC stock is greatly overvalued
It means the current price may concern as a High Risk Entry Point
Encompass Health Corp Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
23.78
2
Median P/E over 5 years
20.15
3
Minimum P/E over 5 years
17.61
4
Earning per share (last 12 months)
4.18 USD
Maximum value
1
x
4
=
99.34 USD
Fair value
2
x
4
=
84.19 USD
Minimum value
3
x
4
=
73.57 USD
Encompass Health Corp price metrics
13.23
Annual return (geometric mean)
29.51
Risk (standard deviation) of returns
β
0.91
Beta (volatility compared to market)