Discounted Cash Flow

Encompass Health Corp.

EHC · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $3.6b $247.6m $427.8m 6.8% $2.77
2017 $3.9b (7.5%) $256.3m (3.5%) $431.4m (0.8%) 6.5% (-3.7%) $2.73 (-1.4%)
2018 $4.3b (9.1%) $292.3m (14.0%) $507.9m (17.7%) 6.8% (4.5%) $2.98 (9.2%)
2019 $4.6b (7.7%) $358.7m (22.7%) $262.9m (-48.2%) 7.8% (14.0%) $3.65 (22.5%)
2020 $4.6b (0.9%) $284.2m (-20.8%) $308.7m (17.4%) 6.1% (-21.4%) $2.87 (-21.4%)
2021 $5.1b (10.3%) $412.2m (45.0%) $186.9m (-39.5%) 8.0% (31.5%) $4.15 (44.6%)
2022 $4.3b (-15.1%) $271.0m (-34.3%) $141.0m (-24.6%) 6.2% (-22.6%) $2.72 (-34.5%)
2023 $4.8b (10.4%) $352.0m (29.9%) $267.7m (89.9%) 7.3% (17.6%) $3.51 (29.0%)
2024 $5.4b (11.9%) $455.7m (29.5%) $360.3m (34.6%) 8.5% (15.7%) $4.53 (29.1%)
2025 $5.9b (10.5%) $566.2m (24.2%) $439.2m (21.9%) 9.5% (12.5%) $5.62 (24.1%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model