DaVita Inc (DVA) is undervalued and Encompass Health Corp (EHC) is fairly valued.
Against our estimates of intrinsic value, DVA trades at the wider discount: a margin of safety of +35%, against +3% for EHC.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.0% (average of 3 methods) values the shares at $284.80; the price of $183.72 is 35% below that value, and 83% of that value comes from beyond year five.
Leak Score 56/100 on 2 of 12 signals
Discounting its cash flows at 8.3% (average of 3 methods) values the shares at $126.92; the price of $122.76 is 3% below that value, and 78% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
| Metric | DVA | EHC |
|---|---|---|
| Verdict | Undervalued | Fairly valued |
| Price | $183.72 | $122.76 |
| Intrinsic value | $284.80 | $126.92 |
| Margin of safety | +35% | +3% |
| Leak Score | 56/100 (2/12) | 59/100 (3/12) |
| Market cap | $11.7B | $12.1B |
| Revenue growth, 5 years | 3.4% | 5.0% |
| Operating margin | 14.9% | 18.0% |
| Net margin | 5.9% | 10.0% |
| Return on equity | 635.3% | 24.8% |
| Debt to equity | — | 1.09 |
| P/E | 15.5x | 20.0x |
| Forward P/E | 10.8x | 18.4x |
| P/B | — | 4.7x |
| Dividend yield | — | 0.5% |