Encompass Health Corporation (EHC) Fair Value 2026

EHC · Medical Care Facilities ·

By CirclFi Research Team · Data from SEC EDGAR, FRED & GDELT

Quality Score

8.7 /10

32 fundamental signals · 12 models active

Value Trap Risk

SAFE (0/100)

Quick Summary — As of 2026-08-28, Encompass Health Corporation (EHC) trades at $120.85, versus a $83.75 median fair value across its 12 active models — 30.7% below the current price. QOC: 8.7/10. Value Trap Risk: 0/100 (SAFE). 12/13 models active. Within that set, the Bayesian DCF component alone returns $73.79.

Key Facts

Ticker
EHC
Price
$120.85
Quality Score
8.7/10
Value Trap Risk
0/100
Models Active
12/13
Last Updated
Strength: First Chicago suggests +75.9% upside with 62% confidence
Risk: Majority of models suggest overvaluation

Is Encompass Health Corporation (EHC) Undervalued or Overvalued in 2026?

According to CirclFi’s 12-model valuation engine, Encompass Health Corporation (EHC) appears overvalued as of : the median of 12 independent fair value estimates is $83.75, 30.7% below the current price of $120.85. Estimates range from $35.06 to $212.62. EHC scores 8.7/10 on fundamental quality and 0/100 on value-trap risk.

For context, the median US equity CirclFi rates trades at an implied -23.4% versus its own 13-model consensus, across 3,809 rated companies as of 2026-08-28. EHC’s -30.7% gap is wider than that market norm, and the Medical Care Facilities sector median is -28.3%. Full market index →

This verdict compares price to intrinsic value only — it is not a buy or sell rating. For the decision case (bull vs bear arguments, risk factors, peers), read Should You Buy Encompass Health Corporation Stock in 2026? →

What Fair Value Does Each Model Give EHC?

12 Intrinsic Value Models vs. Current Price ($120.85)

Core Models (Unlocked)
Model Fair Value Upside
Intrinsic · High Conviction
 $73.79 -38.9%
Intrinsic · High Conviction
 $56.95 -52.9%
Ensemble · Medium Conviction
 $82.04 -32.1%
Scenario · High Conviction
 $212.62 +75.9%
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What Is EHC's Fair Value Range?

Spread across 12 independent models · $35.06 to $212.62

CirclFi's 12 active models place Encompass Health Corporation (EHC) between $35.06 and $212.62 per share, a spread of 212% of the median. The median of that range — $83.75 — is the fair value CirclFi publishes for EHC, against a current price of $120.85.

Low · Markov DDMHigh · First Chicago
$35.06median $83.75$212.62
Where the range comes from
Most bearish modelMarkov DDM$35.06
Most bullish modelFirst Chicago$212.62
Model agreement2 bullish · 8 bearishwide

A band this wide is itself the finding. When independent methods land far apart, they are reading a business whose value depends heavily on which lens you apply — volatile earnings, heavy reinvestment, or an asset base that cash-flow and asset-based methods score differently. That disagreement is information: it says the choice of method matters more than usual for EHC. Treat the median as one reading among several and compare the individual models below before acting.

Every figure above is one model's standalone output on EHC, not a CirclFi price target. How each model works →

What Is Encompass Health Corporation (EHC) Worth in 2026?

According to the CirclFi Deep Alpha Valuation Engine, Encompass Health Corporation's intrinsic value is estimated at a median fair value of $83.75. Trading at $120.85, the stock is approaching fair value or slight overvaluation (implied return of -30.7%), as 8 of 12 models suggest limited further upside. Notably, First Chicago sees the most upside at +75.9% (fair value: $212.62), while Markov DDM is the most conservative at -71.0% ($35.06). The spread between these extremes — +146.9% — reveals how different analytical frameworks can reach starkly different conclusions. Among models with highest confidence, Bayesian DCF, EPV lean bearish — adding weight to the bearish side of the thesis.

What Do the Models Say About EHC?

12 of 13 models are currently active for EHC. Of these, 3 models suggest upside while 9 models suggest overvaluation. Taken together, their median fair value for EHC is $83.75 — the figure CirclFi publishes as this stock's fair value. One component of that median, the Bayesian DCF, returns $73.79 on its own, implying -38.9% downside from the current price. See which stocks rank higher →

How Does EHC Rank in Medical Care Facilities?

Among 60 Medical Care Facilities stocks, EHC ranks #3 by Quality of Company score. CirclFi's QOC score of 8.7/10 evaluates 32 fundamental signals. A score of 8.7 places EHC in the top tier.

See all Most Undervalued Medical Care Facilities Stocks →

Encompass Health Corporation operates in a competitive landscape where fundamental quality metrics are key differentiators for long-term value creation.

Is EHC a Value Trap?

CirclFi's Value Trap algorithm assigns EHC a score of 0/100 (SAFE). This indicates minimal risk. Fundamentals are healthy. The score cross-references apparent undervaluation against fundamental deterioration signals. Browse lowest value-trap stocks →

Multi-Model Methodology

12 of 13 models are active for Encompass Health Corporation. Broad coverage provides high confidence. Each model applies a fundamentally different valuation philosophy. See the complete methodology →

According to the CirclFi Quality of Company (QOC) framework, Encompass Health Corporation earns a quality score of 8.7/10. This robust rating reflects the company's standing across 32 fundamental signals spanning profitability, growth consistency, balance sheet strength, and capital allocation efficiency.

The gap between the most bullish and bearish model spans +146.9% — demonstrating why single-model analysis is dangerous. Browse all stocks with 13-model coverage →

Data Sources & Confidence

Every EHC valuation is built from SEC EDGAR XBRL filings — 700+ standardized financial tags. Macroeconomic context from FRED calibrates discount rates, while GDELT news sentiment feeds into our Sentiment SOTP model. All pipelines run daily. Read the complete data methodology →

Across EHC's 12 active models, average confidence is 55%. Moderate confidence indicates reasonable fit.

CirclFi's output is a research starting point, not a buy/sell signal. All data updates daily. Read the full methodology →

This analysis is produced by the CirclFi Valuation Engine using quantitative models applied to SEC EDGAR filings, public market feeds, and FRED macroeconomic indicators. It is not financial advice.

Read the full investment analysis: Should You Buy Encompass Health Corporation Stock in 2026? →

Bull case, bear case, risk factors & peer comparison — updated daily

Which Similar Medical Care Facilities Stocks Should You Also Analyze?

9 related Medical Care Facilities stocks with 13-model coverage

NHCNational HealthCare CorporationQOC 8.7UHSUniversal Health Services, Inc.QOC 8.5ADUSAddus HomeCare CorporationQOC 8.9ENSGThe Ensign Group, Inc.QOC 8.5NIVFNewGenIvf Group LimitedQOC 2.1OPCHOption Care Health, Inc.QOC 8.4GRDNGuardian Pharmacy Services, Inc.QOC 7.6SGRYSurgery Partners, Inc.QOC 6.4ADIAAdia Med IncQOC 5.2

Read investment analysis: NHC · UHS · ADUS · ENSG · NIVF · OPCH · GRDN · SGRY · ADIA

Which Other Stocks Have a Similar Quality Score to EHC?

7 companies across all industries closest to EHC’s Quality of Company score of 8.7/10.

MSBMesabi TrustQOC 8.7LEALear CorporationQOC 8.7HXLHexcel CorporationQOC 8.7UVSPUnivest Financial CorporationQOC 8.7ITWIllinois Tool Works Inc.QOC 8.7IBMInternational Business Machines CorporationQOC 8.6NVDANVIDIA CorporationQOC 10.0

Read investment analysis: MSB · LEA · HXL · UVSP · ITW · IBM · NVDA

Where Does EHC Sit in CirclFi's Medical Care Facilities Rankings?

EHC is ranked against every other Medical Care Facilities stock CirclFi covers in each of these screens.

See all Medical Care Facilities stocks ranked →

What Else Do Investors Ask About Encompass Health Corporation’s Valuation?

What is Encompass Health Corporation's intrinsic value in 2026?

CirclFi puts Encompass Health Corporation (EHC)'s intrinsic value at $83.75 — the median of 12 independent model estimates as of 2026-08-28, ranging from $35.06 to $212.62. One component of that median, the Bayesian DCF, runs 10,000 Monte Carlo simulations with jump-diffusion and returns $73.79 on its own. The Quality of Company score is 8.7/10 across 32 fundamental signals. All models use SEC EDGAR filings updated daily. See our methodology page for how each model works.

Is EHC overvalued or undervalued right now?

At $120.85, 3 of 12 active models suggest EHC may be undervalued, while 9 indicate potential overvaluation. The median of all 12 fair value estimates is $83.75, 30.7% below the current price of $120.85 — a consensus view that EHC is overvalued. The assessment depends on which methodology best fits Encompass Health Corporation's business model in Medical Care Facilities.

What does a Quality of Company score of 8.7 mean for EHC?

Encompass Health Corporation's QOC of 8.7/10 reflects 32 fundamental signals: profitability margins, revenue growth consistency, balance sheet leverage, free cash flow generation, and capital allocation efficiency. Scores above 7 indicate strong fundamentals and disciplined management.

How many valuation models does CirclFi run on EHC?

CirclFi analyzes EHC with 13 institutional-grade models daily: Bayesian DCF (Monte Carlo + jump-diffusion), EPV (Greenwald zero-growth), EROIC Spread (McKinsey reinvestment), First Chicago (3-scenario), Markov DDM (regime-switching), ML-RIV (machine learning residual income), Dynamic NAV (asset-based), PWERM (option-theoretic), Regime Cross-Sectional (relative), Sentiment SOTP (hybrid), CUCE Ensemble (meta-model), FTNN Topology (neural network), and RCMH-DCF (conditional regime). Currently 12 of 13 are active for this stock. Read the full methodology →

Which valuation models are most bullish and most bearish on EHC?

Of the 12 models currently active on EHC, First Chicago is the most bullish at $212.62 per share, and Markov DDM is the most bearish at $35.06. CirclFi's published fair value for EHC is the median of that range, $83.75, not either extreme. The gap between the two ends equals 212% of the median — a wide spread, meaning the methods genuinely disagree and the median should carry less weight. Browse stocks by value-trap risk →

Is EHC a value trap in 2026?

Encompass Health Corporation's Value Trap score is 0/100 (SAFE). This low score indicates the current valuation is not artificially depressed by fundamental deterioration, suggesting genuine opportunity rather than a trap.

Cite this analysis — “According to CirclFi’s 12-model valuation engine, Encompass Health Corporation (EHC) has a median fair value of $83.75 — 30.7% below the current price of $120.85 — as of 2026-08-28.” Source: circlfi.com/stock/EHC/ · Methodology
Primary sources for this EHC valuation
  • Financial statements: Encompass Health Corporation 10-K and 10-Q filings on SEC EDGAR (CIK 0000785161) — 700+ standardized XBRL tags, published by the U.S. Securities and Exchange Commission.
  • Discount-rate inputs: FRED, Federal Reserve Bank of St. Louis — risk-free rates, VIX, yield curve, inflation.
  • News sentiment: The GDELT Project — global media tone, input to the Sentiment SOTP model.
  • Model definitions: CirclFi methodology — the published specification for all 13 models, including the academic sources each one implements.

Market data for EHC as of ; valuations recomputed .

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