H&R Block, Inc. (HRB) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+129.9%

$121.36

vs $52.78 price

Levered DCF

$117.45

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

3.35

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	6.59×	12.14×	13.09×	8.78×	10.21×	7.42×	-434.73×	13.21×
P/B	41.16×	82.71×	85.74×	152.58×	26.69×	11.8×	46.1×	10.32×
P/S	1.23×	1.95×	2.15×	1.41×	1.63×	1.2×	1.24×	1.81×
EV / EBITDA	5.66×	8.91×	9.26×	6.62×	7.59×	5.84×	17.99×	6.73×
Gross margin	44.3%	44.5%	44.8%	44.6%	45.7%	45.7%	35.1%	43.2%
Operating margin	-32.7%	22.0%	22.3%	21.6%	21.5%	21.5%	6.9%	19.9%
Net margin	18.6%	16.1%	16.5%	15.9%	16.0%	16.0%	-0.3%	13.7%
Current ratio	1.13×	0.9×	1.27×	1.26×	1.39×	1.46×	1.96×	2.16×
Debt / equity	17.89×	26.41×	24.59×	67.85×	10.17×	6.19×	60.75×	2.76×
Interest coverage	-15.99×	10.6×	10.18×	10.26×	8.44×	6.97×	1.91×	7.07×
Dividend yield	4.4%	2.7%	2.3%	3.6%	3.3%	4.7%	6.3%	3.7%
Payout ratio	28.8%	32.6%	30.2%	32.1%	33.7%	35.2%	-2722.2%	48.6%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	624.4%	681.4%	657.1%	1726.9%	261.6%	157.1%	-10.6%	78.0%
Return on invested capital	-44.6%	25.6%	25.8%	25.3%	25.6%	23.5%	-7.6%	21.2%
Return on assets	22.5%	18.6%	18.5%	18.0%	16.9%	15.2%	-0.1%	12.8%
Free cash flow yield	15.6%	8.1%	8.5%	15.4%	13.2%	13.8%	0.8%	9.1%
Earnings yield	15.2%	8.2%	7.7%	11.3%	9.8%	13.3%	-0.2%	7.6%
Enterprise value	$6B	$8.7B	$8.9B	$6.1B	$6.7B	$5.3B	$4.7B	$5.4B
Net debt / EBITDA	1.08×	1.38×	1.2×	1.27×	1.24×	1.24×	5.5×	-0.27×
Cash conversion cycle (days)	-21	-19	-22	-20	-4	18	-25	-35