Encompass Health Corporation

DB:HSOA Stock Report

Market Cap: €8.7b

Encompass Health Valuation

Is HSOA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HSOA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HSOA (€86.5) is trading above our estimate of fair value (€47.9)

Significantly Below Fair Value: HSOA is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for HSOA?

Other financial metrics that can be useful for relative valuation.

HSOA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.6x
Enterprise Value/EBITDA12.2x
PEG Ratio2.6x

Price to Earnings Ratio vs Peers

How does HSOA's PE Ratio compare to its peers?

The above table shows the PE ratio for HSOA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.9x
RHK RHÖN-KLINIKUM
17.8x5.1%€830.0m
M12 M1 Kliniken
19.3x17.5%€322.9m
FME Fresenius Medical Care
21.2x21.9%€11.2b
LIK LIMES Schlosskliniken
25.4xn/a€108.5m
HSOA Encompass Health
23.6x9.1%€9.7b

Price-To-Earnings vs Peers: HSOA is expensive based on its Price-To-Earnings Ratio (23.6x) compared to the peer average (20.9x).


Price to Earnings Ratio vs Industry

How does HSOA's PE Ratio compare vs other companies in the European Healthcare Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.6%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: HSOA is expensive based on its Price-To-Earnings Ratio (23.6x) compared to the European Healthcare industry average (19.1x).


Price to Earnings Ratio vs Fair Ratio

What is HSOA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HSOA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.6x
Fair PE Ratio22.9x

Price-To-Earnings vs Fair Ratio: HSOA is expensive based on its Price-To-Earnings Ratio (23.6x) compared to the estimated Fair Price-To-Earnings Ratio (22.9x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HSOA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€86.50
€91.91
+6.3%
4.6%€98.42€85.00n/a11
Sep ’25€82.00
€91.95
+12.1%
4.4%€99.32€86.56n/a11
Aug ’25€85.00
€91.52
+7.7%
5.4%€104.27€87.66n/a11
Jul ’25€79.00
€90.92
+15.1%
4.0%€100.82€88.68n/a10
Jun ’25€78.50
€89.18
+13.6%
4.0%€99.80€86.87n/a10
May ’25€77.50
€88.52
+14.2%
5.8%€100.73€77.41n/a11
Apr ’25€71.00
€80.83
+13.9%
6.3%€93.63€76.01n/a10
Mar ’25€68.00
€79.58
+17.0%
3.0%€84.04€76.57n/a9
Feb ’25€65.00
€74.44
+14.5%
4.0%€77.69€70.38n/a9
Jan ’25€60.00
€76.76
+27.9%
3.7%€80.44€72.87n/a9
Dec ’24€59.00
€76.76
+30.1%
3.7%€80.44€72.87n/a9
Nov ’24€58.50
€76.76
+31.2%
3.7%€80.44€72.87n/a9
Oct ’24€63.00
€76.29
+21.1%
5.2%€80.26€67.04n/a10
Sep ’24€65.00
€72.99
+12.3%
5.3%€77.55€64.78€82.0011
Aug ’24€59.50
€68.00
+14.3%
6.5%€73.61€56.13€85.0011
Jul ’24€61.00
€68.00
+11.5%
6.5%€73.61€56.13€79.0011
Jun ’24€57.50
€68.29
+18.8%
6.3%€74.29€56.64€78.5011
May ’24€57.00
€66.87
+17.3%
6.3%€72.92€55.60€77.5011
Apr ’24€48.00
€64.99
+35.4%
6.7%€69.90€53.12€71.0011
Mar ’24€52.50
€66.52
+26.7%
3.6%€70.27€61.84€68.0010
Feb ’24€56.50
€62.14
+10.0%
5.2%€67.08€57.76€65.0010
Jan ’24€55.50
€60.76
+9.5%
6.2%€68.35€55.06€60.0010
Dec ’23€55.00
€61.30
+11.5%
5.9%€69.51€55.99€59.0010
Nov ’23€54.50
€63.68
+16.8%
5.6%€72.26€58.21€58.5011
Oct ’23€46.00
€63.95
+39.0%
3.5%€66.99€59.89€63.0010
Sep ’23€47.40
€63.27
+33.5%
3.4%€66.18€59.16€65.0010

Analyst Forecast: Target price is less than 20% higher than the current share price.


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