Top line stable.
+10.5% YoY versus +11.9% prior. 3y CAGR +10.9%.
+10.5%We use cookies
MainRatios uses cookies for essential site functions. With your consent, we also use analytics cookies including session replay sampling (PostHog, Google Analytics) and advertising cookies (Google AdSense). You can reject non-essential cookies, including the "sale" or sharing of personal information under CCPA, and you may withdraw consent at any time (GDPR). See our Privacy Policy for details.
Healthcare · Market Cap: $10.1B
Fundamentals as of 2025-12-31
All analysis on this page is for educational purposes only and does not constitute financial advice. Fair values are model-based estimates. Always do your own research.
The Question
2 of 3 legendary models say BUY EHC — but Joel Greenblatt disagrees.
What would legendary investors pay for EHC?
These figures are not quotes or opinions from Buffett, Graham, Lynch or the other investors. They are our own estimates, computed by applying the intrinsic-value formulas each investor is known for to this company’s financials.
For educational purposes only. Not a recommendation to buy or sell securities.
Yes — Encompass Health Corporation's 23.2% ROE ranks above the S&P 500 median, and D/E 1.56 stays within healthy bounds.
Financial story
Yes — Encompass Health Corporation's 23.2% ROE shows strong capital efficiency, and its 1.56 debt-to-equity stays within healthy bounds.
Bottom line: EHC is rated BUY by 2 of 3 legendary models, with 1 holding and 0 flagging it overvalued, but earns a C sector grade (58/100) in Healthcare. Whether the premium is justified depends on which lens you trust. Drill into the valuation breakdown and sector ranking for the full picture.
Average fair value across qualifying models: $245. See the per-investor fair-value table in the valuation tab.
EHC trades at 17.5x earnings. Sector context and per-investor signals are in the valuation tab.
EHC and RVTY differ on P/E, ROE, and revenue growth. See the full EHC vs RVTY compare matrix.
Buffett, Lynch, and Greenblatt evaluate EHC against their respective frameworks. Per-model fair value and reasoning are in the valuation tab.
EHC's P/E ratio is 17.5x. 5-year P/E history is in the financials tab.
2 of 3 legendary models say BUY. Full breakdown by investor and signal is in the valuation tab.
+10.5% YoY versus +11.9% prior. 3y CAGR +10.9%.
+10.5%Net margin 9.5% versus 8.5% prior (+1.1pp). Operating 17.7%.
9.5%P/E 17.8x — 17% below the 5y median of 21.4x. Forward 16.3x hints at EPS expansion next year.
How does EHC compare?
See exactly where EHC ranks
Sign in to unlock the full sector ranking — free.
Sign in to see the rankingEHC sits at #23 in Healthcare with a C grade (58/100).