Encompass Health Corp (EHC) is fairly valued and Ensign Group Inc (ENSG) is overvalued.
Against our estimates of intrinsic value, EHC trades at the wider discount: a margin of safety of +3%, against -25% for ENSG.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 8.2% (average of 3 methods) values the shares at $141.03; the price of $176.32 is 25% above that value, and 80% of that value comes from beyond year five.
Leak Score 43/100 on 3 of 12 signals
| Metric | EHC | ENSG |
|---|---|---|
| Verdict | Fairly valued | Overvalued |
| Price | $122.76 | $176.32 |
| Intrinsic value | $126.92 | $141.03 |
| Margin of safety | +3% | -25% |
| Leak Score | 59/100 (3/12) | 43/100 (3/12) |
| Market cap | $12.1B | $10.3B |
| Revenue growth, 5 years | 5.0% | 16.5% |
| Operating margin | 18.0% | 8.8% |
| Net margin | 10.0% | 6.9% |
| Return on equity | 24.8% | 17.0% |
| Debt to equity | 1.09 | 0.92 |
| P/E | 20.0x | 27.6x |
| Forward P/E | 18.4x | 20.6x |
| P/B | 4.7x | 4.2x |
| Dividend yield | 0.5% | 0.1% |