We’ve recently updated our valuation analysis.

Ensign Group Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ENSG 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/Revenue2.1x
Enterprise Value/EBITDA18x
PEG Ratio1.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ENSG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average18.9x
THC Tenet Healthcare
10x15.4%US$5.6b
EHC Encompass Health
17.8x12.2%US$6.2b
SEM Select Medical Holdings
20.6x23.3%US$3.6b
ACHC Acadia Healthcare Company
27.2x12.0%US$7.7b
ENSG Ensign Group
23.8x12.3%US$5.1b

Price-To-Earnings vs Peers: ENSG is expensive based on its Price-To-Earnings Ratio (23.8x) compared to the peer average (18.9x).


Price to Earnings Ratio vs Industry

How does ENSG's PE Ratio compare vs other companies in the US Healthcare Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.1%
n/an/an/a

Price-To-Earnings vs Industry: ENSG is expensive based on its Price-To-Earnings Ratio (23.8x) compared to the US Healthcare industry average (20.8x)


Price to Earnings Ratio vs Fair Ratio

What is ENSG'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.

ENSG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.8x
Fair PE Ratio25.5x

Price-To-Earnings vs Fair Ratio: ENSG is good value based on its Price-To-Earnings Ratio (23.8x) compared to the estimated Fair Price-To-Earnings Ratio (25.5x).


Share Price vs Fair Value

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

Below Fair Value: ENSG ($92.07) is trading below our estimate of fair value ($106.11)

Significantly Below Fair Value: ENSG is trading below fair value, but not by a significant amount.


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 ENSG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$92.07
US$105.60
+14.7%
2.8%US$111.00US$102.00n/a5
Jan ’24US$94.61
US$101.60
+7.4%
3.6%US$105.00US$95.00n/a5
Dec ’23US$94.35
US$101.60
+7.7%
3.6%US$105.00US$95.00n/a5
Nov ’23US$91.69
US$101.60
+10.8%
3.6%US$105.00US$95.00n/a5
Oct ’23US$79.50
US$99.40
+25.0%
4.0%US$105.00US$95.00n/a5
Sep ’23US$84.01
US$98.40
+17.1%
2.9%US$102.00US$95.00n/a5
Aug ’23US$81.87
US$97.20
+18.7%
6.4%US$102.00US$85.00n/a5
Jul ’23US$75.69
US$97.40
+28.7%
4.0%US$101.00US$90.00n/a5
Jun ’23US$78.14
US$97.40
+24.6%
4.0%US$101.00US$90.00n/a5
May ’23US$80.33
US$98.60
+22.7%
0.8%US$100.00US$98.00n/a5
Apr ’23US$94.23
US$97.00
+2.9%
3.7%US$100.00US$90.00n/a5
Mar ’23US$82.86
US$94.80
+14.4%
4.6%US$99.00US$89.00n/a5
Feb ’23US$74.57
US$93.40
+25.3%
4.5%US$98.00US$87.00n/a5
Jan ’23US$83.96
US$92.20
+9.8%
4.5%US$98.00US$87.00US$94.615
Dec ’22US$74.83
US$92.20
+23.2%
4.5%US$98.00US$87.00US$94.355
Nov ’22US$78.28
US$90.60
+15.7%
6.5%US$98.00US$82.00US$91.695
Oct ’22US$75.62
US$96.80
+28.0%
3.8%US$100.00US$90.00US$79.505
Sep ’22US$82.95
US$96.80
+16.7%
3.8%US$100.00US$90.00US$84.015
Aug ’22US$85.07
US$98.40
+15.7%
1.5%US$100.00US$96.00US$81.875
Jul ’22US$88.86
US$98.20
+10.5%
1.9%US$100.00US$95.00US$75.695
Jun ’22US$83.92
US$99.00
+18.0%
1.0%US$100.00US$98.00US$78.144
May ’22US$85.85
US$97.75
+13.9%
1.8%US$100.00US$95.00US$80.334
Apr ’22US$93.75
US$93.25
-0.5%
2.2%US$95.00US$90.00US$94.234
Mar ’22US$83.22
US$92.25
+10.9%
2.1%US$95.00US$90.00US$82.864
Feb ’22US$84.80
US$87.50
+3.2%
6.1%US$95.00US$82.00US$74.574
Jan ’22US$72.92
US$69.75
-4.3%
8.6%US$79.00US$64.00US$83.964

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


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