HRB Valuation

H & R Block Inc

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49.640

-1.81(-3.518%)1D

HRB Relative Valuation

HRB's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, HRB is overvalued; if below, it's undervalued.

Historical Valuation

H & R Block Inc (HRB) is now in the Undervalued zone, suggesting that its current forward PE ratio of 10.38 is considered Undervalued compared with the five-year average of 9.96. The fair price of H & R Block Inc (HRB) is between 55.11 to 67.68 according to relative valuation methord. Compared to the current price of 49.64 USD , H & R Block Inc is Undervalued By 9.92%.

Relative Value

Fair Zone

55.11-67.68

Current Price：49.64

9.92%

Undervalued

10.03

Trailing

Forward

7.23

EV/EBITDA

H & R Block Inc. (HRB) has a current EV/EBITDA of 7.23. The 5-year average EV/EBITDA is 8.06. The thresholds are as follows: Strongly Undervalued below 5.96, Undervalued between 5.96 and 7.01, Fairly Valued between 9.12 and 7.01, Overvalued between 9.12 and 10.17, and Strongly Overvalued above 10.17. The current Forward EV/EBITDA of 7.23 falls within the Historic Trend Line -Fairly Valued range.

8.07

EV/EBIT

H & R Block Inc. (HRB) has a current EV/EBIT of 8.07. The 5-year average EV/EBIT is 9.42. The thresholds are as follows: Strongly Undervalued below 7.03, Undervalued between 7.03 and 8.23, Fairly Valued between 10.62 and 8.23, Overvalued between 10.62 and 11.81, and Strongly Overvalued above 11.81. The current Forward EV/EBIT of 8.07 falls within the Undervalued range.

49.64

H & R Block Inc. (HRB) has a current PS of 49.64. The 5-year average PS is 2.01. The thresholds are as follows: Strongly Undervalued below -6.31, Undervalued between -6.31 and -2.15, Fairly Valued between 6.17 and -2.15, Overvalued between 6.17 and 10.33, and Strongly Overvalued above 10.33. The current Forward PS of 49.64 falls within the Strongly Overvalued range.

0.00

P/OCF

H & R Block Inc. (HRB) has a current P/OCF of 0.00. The 5-year average P/OCF is 2.21. The thresholds are as follows: Strongly Undervalued below -5.26, Undervalued between -5.26 and -1.52, Fairly Valued between 5.95 and -1.52, Overvalued between 5.95 and 9.68, and Strongly Overvalued above 9.68. The current Forward P/OCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/FCF

H & R Block Inc. (HRB) has a current P/FCF of 0.00. The 5-year average P/FCF is 4.47. The thresholds are as follows: Strongly Undervalued below -3.40, Undervalued between -3.40 and 0.54, Fairly Valued between 8.40 and 0.54, Overvalued between 8.40 and 12.34, and Strongly Overvalued above 12.34. The current Forward P/FCF of 0.00 falls within the Undervalued range.

H & R Block Inc (HRB) has a current Price-to-Book (P/B) ratio of 77.52. Compared to its 3-year average P/B ratio of 6.65 , the current P/B ratio is approximately 1066.10% higher. Relative to its 5-year average P/B ratio of 24.20, the current P/B ratio is about 220.29% higher. H & R Block Inc (HRB) has a Forward Free Cash Flow (FCF) yield of approximately 0.09%. Compared to its 3-year average FCF yield of 10.85%, the current FCF yield is approximately -99.18% lower. Relative to its 5-year average FCF yield of 9.37% , the current FCF yield is about -99.05% lower.

74.80

P/B

Median3y

6.65

Median5y

24.20

0.09

FCF Yield

Median3y

10.85

Median5y

9.37

Competitors Valuation Multiple

The average P/S ratio for HRB's competitors is 209.19, providing a benchmark for relative valuation. H & R Block Inc Corp (HRB) exhibits a P/S ratio of 49.64, which is -76.27% above the industry average. Given its robust revenue growth of 5.03%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Life Time Group Holdings Inc

Global Business Travel Group Inc

7.84

0.96%

4.21B

Performance Decomposition

Market capitalization of HRB decreased by 15.72% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 193.81M to 203.55M.

The secondary factor is the Margin Expansion, contributed -8.15%to the performance.

Overall, the performance of HRB in the past 1 year is driven by Revenue Growth. Which is more sustainable.

5.03%

193.81M → 203.55M

Revenue Growth

-8.15%

-88.45 → -81.24

Margin Expansion

-12.60%

12.85 → 11.23

P/E Change

-15.72%