DCF — ENCOMPASS HEALTH REHABILITATION HOSP
Enterprise Value: $38.2M
🛡️ Public data only — no PHI permitted on this instance.
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$38.2M
Enterprise Value
$10.5M
PV of Cash Flows
$27.7M
PV of Terminal Value
$44.5M
Terminal Value
10.0%
WACC
2.5%
Terminal Growth
Cash Flow Projections
PROJ| Year | Revenue | EBITDA | Margin | FCF | PV(FCF) |
|---|---|---|---|---|---|
| Year 1 | $29.5M | $4.5M | 15.0% | $2.3M | $2.1M |
| Year 2 | $30.4M | $4.9M | 16.0% | $2.6M | $2.1M |
| Year 3 | $31.3M | $5.4M | 17.0% | $2.9M | $2.2M |
| Year 4 | $32.2M | $5.7M | 18.0% | $3.1M | $2.1M |
| Year 5 | $33.2M | $5.9M | 18.0% | $3.3M | $2.0M |
Interpretation
INTAt a WACC of 10.0% and terminal growth of 2.5%, enterprise value is $38.2M. Terminal value accounts for 72% 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$28.6M
revenue growth rates[0.03, 0.03, 0.03, 0.03, 0.03]
ebitda margin base0.1464605738364512
ebitda margin improvement bps[50, 100, 100, 50, 25]
capex pct revenue0.04
nwc pct revenue0.08
tax rate0.25
projection years5