DCF — ENCOMPASS HEALTH REHABILITATION HOSP
Enterprise Value: $22.8M
🛡️ Public data only — no PHI permitted on this instance.
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$22.8M
Enterprise Value
$5.8M
PV of Cash Flows
$17.0M
PV of Terminal Value
$27.4M
Terminal Value
10.0%
WACC
2.5%
Terminal Growth
Cash Flow Projections
PROJ| Year | Revenue | EBITDA | Margin | FCF | PV(FCF) |
|---|---|---|---|---|---|
| Year 1 | $36.9M | $3.1M | 8.0% | $1.0M | $0.9M |
| Year 2 | $38.0M | $3.6M | 9.0% | $1.3M | $1.1M |
| Year 3 | $39.1M | $4.1M | 10.0% | $1.7M | $1.3M |
| Year 4 | $40.3M | $4.4M | 11.0% | $1.9M | $1.3M |
| Year 5 | $41.5M | $4.7M | 11.0% | $2.0M | $1.2M |
Interpretation
INTAt a WACC of 10.0% and terminal growth of 2.5%, enterprise value is $22.8M. 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$35.8M
revenue growth rates[0.03, 0.03, 0.03, 0.03, 0.03]
ebitda margin base0.07999999888255087
ebitda margin improvement bps[50, 100, 100, 50, 25]
capex pct revenue0.04
nwc pct revenue0.08
tax rate0.25
projection years5