DCF — ENCOMPASS HEALTH REHABILITATION HOSP
Enterprise Value: $26.9M
🛡️ Public data only — no PHI permitted on this instance.
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$26.9M
Enterprise Value
$7.3M
PV of Cash Flows
$19.6M
PV of Terminal Value
$31.6M
Terminal Value
10.0%
WACC
2.5%
Terminal Growth
Cash Flow Projections
PROJ| Year | Revenue | EBITDA | Margin | FCF | PV(FCF) |
|---|---|---|---|---|---|
| Year 1 | $26.9M | $3.3M | 12.0% | $1.5M | $1.4M |
| Year 2 | $27.7M | $3.7M | 13.0% | $1.8M | $1.4M |
| Year 3 | $28.6M | $4.1M | 14.0% | $2.0M | $1.5M |
| Year 4 | $29.4M | $4.3M | 15.0% | $2.2M | $1.5M |
| Year 5 | $30.3M | $4.5M | 15.0% | $2.3M | $1.4M |
Interpretation
INTAt a WACC of 10.0% and terminal growth of 2.5%, enterprise value is $26.9M. Terminal value accounts for 73% 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$26.2M
revenue growth rates[0.03, 0.03, 0.03, 0.03, 0.03]
ebitda margin base0.1173458967915881
ebitda margin improvement bps[50, 100, 100, 50, 25]
capex pct revenue0.04
nwc pct revenue0.08
tax rate0.25
projection years5