HR Block Stock Valuation

HRB
 Stock
  

USD 43.45  0.26  0.59%   

Do you wonder what the value of HR Block is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as HR Block, is its stock price multiplied by the total number of shares outstanding, calculating HR Block's enterprise value requires a different approach. It uses HR Block's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current year Tangible Asset Value is expected to grow to about 2.4 B, whereas Free Cash Flow is forecasted to decline to about 674.3 M.
HR Block owns a latest Real Value of $35.08 per share. The recent price of the firm is $43.45. At this time, the firm appears to be overvalued. Our model calculates the value of HR Block from inspecting the firm fundamentals such as Current Valuation of 8.29 B, shares owned by institutions of 93.22 %, and Profit Margin of 0.16 % as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we encourage taking in undervalued equities and trading overvalued equities since, sooner or later, asset prices and their ongoing real values will blend.
  
HR Block Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as HR Block's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

HR Block Most Recent Valuation Data

Dividend Share
1.08
Beta
0.61
Fiscal Year End
April
property Plant And Equipment Net
551.7 M
Enterprise Value
8.3 B
current Deferred Revenue
196.1 M
Overvalued
Today 43.45
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 HR Block 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 HR Block 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.
35.08
Real Value
47.61
Upside
Estimating the potential upside or downside of HR Block helps investors to forecast how HR Block 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 (4)
LowProjected EPSHigh
2.812.883.04
Details
Hype
Prediction
LowEstimated ValueHigh
41.2643.2845.30
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.700.720.74
Details
6 Analysts
Consensus
LowTarget PriceHigh
26.0027.6030.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use HR Block's intrinsic value based on its ongoing forecasts of HR Block's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against HR Block's closest peers. When choosing an evaluation method for HR Block, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

HR Block Investments

186.94 Million

HR Block Valuation Drivers Correlation

Many accounts on the financial statements of HR Block are highly interrelated and sometimes correlated. Consequently, when conducting HR Block's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of HR Block
Click cells to compare fundamentals

HR Block Valuation Trend

Knowing HR Block's actual value is paramount for traders to make sound investment determinations. HR Block's real value is not only important for the investor to make better decisions but also for a more accurate overall view of HR Block's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both HR Block's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

HR Block Market Cap

HR Block is one of the top stocks in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is currently estimated at about 2.31 Trillion. HR Block adds roughly 6.8 Billion in market capitalization claiming only tiny portion of stocks in Consumer Discretionary industry.
Capitalization  Revenue  Valuation  Workforce  Total debt

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 beta category among related companies. It is one of the top stocks in price to book category among related companies fabricating about  44.23  of Price to Book per Beta. As of December 1, 2022, Price to Book Value is expected to decline to 26.60. 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.
Fiscal Year End
April
Industry
Personal Services
Concentration
Specialized Consumer Services
Full Time Employees
3.8 K
Service Category
Diversified Consumer Services
Employer Id Number
44-0607856
Last ReportedProjected for 2022
Gross Profit1.6 B1.6 B
Profit Margin 15.99  14.11 
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 HR Block, 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

HR Block Dividend Yield is projected to increase slightly based on the last few years of reporting. The past year's Dividend Yield was at 0.031. The current year Dividends per Basic Common Share is expected to grow to 1.09, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (201.2 M). . HR Block Accumulated Retained Earnings Deficit are projected to decrease significantly based on the last few years of reporting. The past year's Accumulated Retained Earnings Deficit were at 120.41 Million. The current year Earnings per Basic Share is expected to grow to 3.53, whereas Earning Before Interest and Taxes EBIT is forecasted to decline to about 661.3 M.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-186.5 M-201.2 M
Dividend Yield 0.031  0.0383 
Dividends per Basic Common Share 1.08  1.09 
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 HR Block 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 HR Block 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 Valuation Growth Rates

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.
DescriptionHR Block, Inc., through its subsidiaries, provides assisted income tax return preparation and do-it-yourself tax return preparation services and products to the general public primarily in the United States, Canada, and Australia. The company offers assisted income tax re
Quarterly Earnings Growth Y O Y1.455

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 HR Block we look at many different elements of the entity such as HR Block'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.
Please check Risk vs Return Analysis. You can also try Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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When running HR Block 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 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 HR Block 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 YOY
1.46
Market Capitalization
6.8 B
Quarterly Revenue Growth YOY
(0.07) 
Return On Assets
0.15
The market value of HR Block is measured differently than its book value, which is the value of HR Block 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 HR Block value 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.