DCF — ENCOMPASS HEALTH REHABILITATION HOSP
Enterprise Value: $26.8M
🛡️ Public data only — no PHI permitted on this instance.
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$26.8M
Enterprise Value
$6.8M
PV of Cash Flows
$20.0M
PV of Terminal Value
$32.2M
Terminal Value
10.0%
WACC
2.5%
Terminal Growth
Cash Flow Projections
PROJ| Year | Revenue | EBITDA | Margin | FCF | PV(FCF) |
|---|---|---|---|---|---|
| Year 1 | $43.4M | $3.7M | 9.0% | $1.2M | $1.1M |
| Year 2 | $44.7M | $4.2M | 10.0% | $1.6M | $1.3M |
| Year 3 | $46.0M | $4.8M | 11.0% | $2.0M | $1.5M |
| Year 4 | $47.4M | $5.2M | 11.0% | $2.2M | $1.5M |
| Year 5 | $48.8M | $5.5M | 11.0% | $2.4M | $1.5M |
Interpretation
INTAt a WACC of 10.0% and terminal growth of 2.5%, enterprise value is $26.8M. Terminal value accounts for 75% of total EV — typical range (60-80%).
Next steps: Check the LBO model to see equity returns at this entry price, or the EBITDA bridge to model value creation levers.
Assumptions
ASSMrevenue base$42.1M
revenue growth rates[0.03, 0.03, 0.03, 0.03, 0.03]
ebitda margin base0.08000000094957323
ebitda margin improvement bps[50, 100, 100, 50, 25]
capex pct revenue0.04
nwc pct revenue0.08
tax rate0.25
projection years5