HR Block Valuation

HRB Stock  USD 48.66  1.24  2.61%   
At this time, the firm appears to be overvalued. HR Block owns a latest Real Value of $43.79 per share. The recent price of the firm is $48.66. Our model calculates the value of HR Block from inspecting the firm fundamentals such as Operating Margin of (1.49) %, return on asset of 0.18, and Shares Owned By Insiders of 1.05 % as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors encourage taking in undervalued equities and trading overvalued equities since, sooner or later, asset prices and their ongoing real values will blend.
Price Book
26.6225
Enterprise Value
9.2 B
Enterprise Value Ebitda
9.7865
Price Sales
1.946
Forward PE
10.3734
Overvalued
Today
48.66
Please note that HR Block's price fluctuation is very steady at this time. Calculation of the real value of HR Block is based on 3 months time horizon. Increasing HR Block's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for HR Block is useful when determining the fair value of the HRB stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of HR Block. Since HR Block is currently traded on the exchange, buyers and sellers on that exchange determine the market value of HRB Stock. However, HR Block's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  48.66 Real  43.79 Target  39.33 Hype  48.7
The real value of HRB Stock, also known as its intrinsic value, is the underlying worth of HR Block Company, which is reflected in its stock price. It is based on HR Block's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of HR Block's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence HR Block's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
43.79
Real Value
53.53
Upside
Estimating the potential upside or downside of HR Block helps investors to forecast how HRB stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of HR Block more accurately as focusing exclusively on HR Block's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
4.494.614.69
Details
Hype
Prediction
LowEstimatedHigh
47.0648.7050.34
Details
4 Analysts
Consensus
LowTarget PriceHigh
35.7939.3343.66
Details

HR Block Investments

(122.43 Million)

HR Block Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining HR Block's current stock value. Our valuation model uses many indicators to compare HR Block value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across HR Block competition to find correlations between indicators driving HR Block's intrinsic value. More Info.
HR Block is one of the top stocks in five year return category among related companies. It is one of the top stocks in annual yield category among related companies fabricating about  0.01  of Annual Yield per Five Year Return. The ratio of Five Year Return to Annual Yield for HR Block is roughly  164.07 . Comparative valuation analysis is a catch-all model that can be used if you cannot value HR Block by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for HR Block's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the HR Block's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates HR Block's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in HR Block and how it compares across the competition.

About HR Block Valuation

The stock valuation mechanism determines the current worth of HR Block on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of HR Block. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of HR Block based exclusively on its fundamental and basic technical indicators. By analyzing HR Block's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of HR Block's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of HR Block. We calculate exposure to HR Block's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to HR Block's related companies.
Last ReportedProjected for 2024
Gross Profit2.5 B1.6 B
Pretax Profit Margin 0.24  0.22 
Operating Profit Margin 0.20  0.13 
Net Profit Margin 0.18  0.13 
Gross Profit Margin 0.71  0.68 

8 Steps to conduct HR Block's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates HR Block's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct HR Block's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain HR Block's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine HR Block's revenue streams: Identify HR Block's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research HR Block's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish HR Block's growth potential: Evaluate HR Block's management, business model, and growth potential.
  • Determine HR Block's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate HR Block's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
HR Block's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether HR Block's value is low or high relative to the company's performance and growth projections. Determining the market value of HR Block can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of HR Block represents a small ownership stake in the entity. As a stockholder of HRB, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

HR Block Dividends Analysis For Valuation

At present, HR Block's Dividend Payout Ratio is projected to slightly decrease based on the last few years of reporting. The current year's Dividend Paid And Capex Coverage Ratio is expected to grow to 9.41, whereas Dividends Paid is forecasted to decline to about 167.1 M. . At present, HR Block's Price Earnings Ratio is projected to decrease significantly based on the last few years of reporting. The current year's Price Earnings To Growth Ratio is expected to grow to 0.97, whereas Retained Earnings are projected to grow to (53.2 M).
Last ReportedProjected for 2024
Dividends Paid204.6 M167.1 M
Dividend Yield 0.03  0.02 
Dividend Payout Ratio 0.37  0.39 
Dividend Paid And Capex Coverage Ratio 8.73  9.41 
There are various types of dividends HR Block can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of HRB shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from HR Block directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When HRB pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of HR Block by the value of the dividends paid out.

HR Block Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as HR Block does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding154.5 M
Quarterly Earnings Growth Y O Y0.444
Forward Price Earnings10.3734

HR Block Current Valuation Indicators

Valuation refers to the process of determining the present value of HR Block and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value HRB we look at many different elements of the entity such as HRB's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. HR Block's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final HR Block's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as HR Block, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use HR Block's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes HR Block's worth.
When determining whether HR Block offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of HR Block's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Hr Block Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Hr Block Stock:
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in HR Block. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area.
For information on how to trade HRB Stock refer to our How to Trade HRB Stock guide.
You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

Complementary Tools for HRB Stock analysis

When running HR Block's price analysis, check to measure HR Block's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy HR Block is operating at the current time. Most of HR Block's value examination focuses on studying past and present price action to predict the probability of HR Block's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move HR Block's price. Additionally, you may evaluate how the addition of HR Block to your portfolios can decrease your overall portfolio volatility.
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Is HR Block's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of HR Block. If investors know HRB will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about HR Block listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.444
Dividend Share
1.22
Earnings Share
3.6
Revenue Per Share
23.597
Quarterly Revenue Growth
0.076
The market value of HR Block is measured differently than its book value, which is the value of HRB that is recorded on the company's balance sheet. Investors also form their own opinion of HR Block's value that differs from its market value or its book value, called intrinsic value, which is HR Block's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because HR Block's market value can be influenced by many factors that don't directly affect HR Block's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between HR Block's value and its price as these two are different measures arrived at by different means. Investors typically determine if HR Block is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, HR Block's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.