DCF — ENCOMPASS HEALTH REHABILITATION HOSP
Enterprise Value: $28.5M
🛡️ Public data only — no PHI permitted on this instance.
← DashboardPRFProfileMEMIC MemoBRGBridgeCIComp IntelSCNScenariosAIMLDCFDCFLBOLBOFIN3-StmtMKTMarketDENDenialRETReturnsLVRLeversWFLWaterfallPLYPlaybookTRDTrendsPREDPredictedMEM2Memo
$28.5M
Enterprise Value
$7.8M
PV of Cash Flows
$20.6M
PV of Terminal Value
$33.3M
Terminal Value
10.0%
WACC
2.5%
Terminal Growth
Cash Flow Projections
PROJ| Year | Revenue | EBITDA | Margin | FCF | PV(FCF) |
|---|---|---|---|---|---|
| Year 1 | $22.9M | $3.4M | 15.0% | $1.7M | $1.5M |
| Year 2 | $23.6M | $3.7M | 16.0% | $1.9M | $1.6M |
| Year 3 | $24.3M | $4.0M | 17.0% | $2.2M | $1.6M |
| Year 4 | $25.0M | $4.3M | 17.0% | $2.3M | $1.6M |
| Year 5 | $25.8M | $4.5M | 17.0% | $2.4M | $1.5M |
Interpretation
INTAt a WACC of 10.0% and terminal growth of 2.5%, enterprise value is $28.5M. 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$22.2M
revenue growth rates[0.03, 0.03, 0.03, 0.03, 0.03]
ebitda margin base0.14140847539922313
ebitda margin improvement bps[50, 100, 100, 50, 25]
capex pct revenue0.04
nwc pct revenue0.08
tax rate0.25
projection years5