Popular:
Encompass Health Corporation (EHC)
Intrinsic Value (DCF)
Current$102.80
→
Intrinsic$41.76
-59%
$20.43$41.76$82.31
Market implies 26% growth for 5 years
Current price reflects execution expectations above 9% growth — not unreasonable for quality businesses.
At $103, the market prices in continued strong cash flow growth (26%) — likely reflecting buybacks, margin stability, and ecosystem strength.
Range: Bear $20 → Bull $82. Current price implies expectations above the base case, closer to bull expectations.
| Discount ↓Growth → | 5% | 7% | 9% | 11% |
|---|---|---|---|---|
| 8% | $55 | $62 | $70 | $78 |
| 10% | $31 | $36 | $42 | $47 |
| 12% | $19 | $22 | $26 | $31 |
| 14% | $10 | $13 | $17 | $20 |
Bull Case
- Bull case ($82) with 11% growth, 9% discount rate
- Conservative 9% growth assumption is achievable based on track record
Bear Case
- Bear case ($20) implies 80% downside at 7% growth, 12% discount
- Price reflects 26% growth expectations vs 9% historical — high bar to clear
- Trading 59% above base case — execution must exceed assumptions to justify
Loading charts...
5-Year Free Cash Flow Projection
Year 1$393.73M
Year 2$430.26M
Year 3$470.19M
Year 4$513.81M
Year 5$561.49M
Terminal$8.26B
📐 Model Inputs
Growth Rate9.3%5Y CAGR (cascade: 5Y→3Y→TTM)
Discount Rate10.0%WACC estimate
Terminal Growth3.0%Perpetuity rate
Base Free Cash Flow$360.30MTTM actual
Bear g×0.8, r+2%
Base Historical CAGR
Bull g×1.2, r−1.5%
DCF estimates based on historical growth rates extrapolated forward. See FAQ below for full methodology.