H&R Block Inc (HRB) fair value: what the stock is really worth
As of Nov 9, 2026: fair value (intrinsic value) of H&R Block Inc stock $92.29, price $50.98, upside +81.0%, quality 73 out of 100. Rating: strongly undervalued. Calculated from audited financials with 17 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 10, 2026.
How to read this chart
60‑month range $18.37 – $61.65 · fair‑value band $40.72 – $118.17 · the $50.98 price screens below the $92.29 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 10, 2026.
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H&R Block, Inc., through its subsidiaries, provides assisted and do-it-yourself (DIY) tax return preparation services in the United States, Canada, and Australia.
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The company also provides Refund Transfers, that enable clients to receive their tax refunds by their chosen method of disbursement; Peace of Mind extended service plans, that represents clients when audited and assumes the cost; H&R Block Emerald Prepaid Mastercard and Spruce, which are debit cards that can be used for everyday purchases and ATM withdrawals; H&R Block Emerald Advance term loans; Tax Identity Shield that provides clients assistance in helping protect their tax identity and access to services to help restore their tax identity; refund advance loans; and H&R Block Instant Refund.
In addition, it offers small business financial solutions to manage finances, including payment processing, payroll, and bookkeeping services.
The company its solutions through in-person; a system of retail offices operated directly by the company or its franchisees; and online and mobile applications, virtual, and desktop software. H&R Block, Inc. was incorporated in 1955 and is headquartered in Kansas City, Missouri.
Stock analysis
H&R Block Inc (HRB) currently trades at $50.98, while our model-based Fair Value estimate is $92.29, implying the stock looks roughly 45% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $105.45 per share, and 11 of the 17 models we run sit above the $50.98 price.
Bear case: the Dividend Discount group reads lowest at $26.31, and 6 of the 17 models stay below the price. Data coverage for this calculation is high.
Scenario range: $40.72 (bear) to $118.17 (bull), the price of $50.98 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 73/100 (solid quality), in the Consumer Cyclical sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
H&R Block Inc reported revenue of $3.9B in FY2026 versus $3.5B in FY2022, a compound +3.3%/yr. Reported net income was $734M in FY2026, compounding +7.3%/yr from FY2022.
Key figures
Market cap $6.5B Mid · P/E ratio 9.0 · P/S ratio 1.64 · EPS (TTM) $5.69 · Dividend yield 3.3% · Net margin 18.6% · Return on equity 71.4% · Return on assets (EBIT) 11.6% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 89 out of 100 (low confidence).
What moves the price
The share trades about 8% below its 52-week high and 86% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −7% fair-value upside, at 81%, HRB screens cheaper than that median.
Fair Value models
Bear$40.72Fair Value $92.29Bull$118.17
Price $50.98 · Upside +81.0%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 4 months old). Earnings retained since then ($1.46 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, one officer or director sold shares worth $109,853 and none bought.
SaleMark J. DarlingChief Retail Officer2,700 shares at $40.69$109,853Sep 30, 2026
SaleJeffrey J Jones IIPresident & CEO, Director2× since Nov 12, 2025: 305,267 shares, avg. $45.65$13.9MNov 19, 2025
Plus 11 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.73/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+4.9%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.4%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.6%
Start year 2021 (pandemic). Over 10 years: +2.6% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.9%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+16.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year+13.4%
Dividend (yield on the price)3.3%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.13.4% vs 13.0%, steady
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.22% → −33%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−6.3%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+4.0%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −8.5% a year for the price and +1.6% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (95 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Core tax prep blends digital tools with human expertise to generate strong seasonal cash flows, yet the expansion into advisory services raises execution risks around margins and retention.
Main risk: Intuit's TurboTax with its freemium model, assisted offerings and AI tools plus IRS Direct File and cheaper options like Cash App Taxes could draw customers away from H&R Block's assisted and DIY services and pressure pricing.
Bull case: H&R Block could integrate its OpenAI partnership more deeply into assisted preparation to improve efficiency and differentiate from pure DIY rivals while expanding year-round small-business services at Wave.
Bear case: If Intuit and free government options capture more volume and regulatory actions impose further restrictions, H&R Block's core seasonal tax-preparation revenue could shrink significantly with limited offsetting growth elsewhere.
H&R Block blends digital tools with human expertise in tax prep while building year-round small business services through Block Advisors and Wave. The seasonal core business delivers strong cash flows but the push into advisory work introduces execution questions around margins and client retention. Our models currently see the shares as undervalued. Will the diversification add more stable growth than it subtracts from peak-season efficiency?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Personal Services · 38 stocks
Beats the industry median on 10/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score73 · Top 25%
Fair Value upside+81.0% · Top 25%
Profitability
Return on equity (12 months)71.4% · Top 25%
Return on assets22.5% · Top 25%
Net margin (12 months)18.6% · Top 25%
Operating margin (12 months)32.9% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)3.0% · Below median
Dividend yield (12 months)3.3% · Below median
Balance sheet
Debt / equity12.70× · Highest 25%
Valuation Multiplesvs Personal Services median · lower = cheaper
P/E (12 months)9.0× · Cheapest 25%
P/S (12 months)1.64× · Pricier than median
Price / free cash flow (fiscal year)8.6× · Cheaper than median
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As of Nov 10, 2026, our model estimates a fair value of $92.29 versus a price of $50.98, about +81% upside (undervalued).
What is the fair value of HRB?
Our model-based fair value for H&R Block Inc is $92.29 (as of Nov 10, 2026), built from audited fundamentals. The current price: $50.98.
What is the quality score of HRB?
H&R Block Inc has a Quality Score of 73/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for H&R Block Inc (HRB)?
Our model-based price target is the fair value of $92.29 (as of Nov 10, 2026) from 17 valuation models. Cautious scenario $40.72, optimistic scenario $118.17. It is a calculation from audited fundamentals, not an analyst target.
What is the H&R Block Inc stock forecast for 2026?
Our models put fair value at $92.29, about +81% upside versus a price of $50.98 (undervalued). Cautious scenario $40.72, optimistic scenario $118.17. The calculation is refreshed regularly with new filings.
What is the revenue of H&R Block Inc (HRB)?
H&R Block Inc reported trailing-twelve-month revenue of about $3.9B (latest available figure, as of Nov 10, 2026).
Does H&R Block Inc pay a dividend?
H&R Block Inc currently shows a dividend yield of 3.30% relative to its recent price (as of Nov 10, 2026).
How much is the dividend of H&R Block Inc (HRB) and when is the ex-dividend date?
H&R Block Inc pays a dividend of $1.68 per share a year, a dividend yield of 3.3%. The last ex-dividend date was Sep 3, 2026. A dividend has been paid every year since at least 1985. The payout ratio is 33.1% of earnings (on adjusted earnings, reported 29.5%). Free cash flow covers the dividend 3.67 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into H&R Block Inc (HRB)?
For today's price to be fair in a discounted-cash-flow model, H&R Block Inc would have to grow free cash flow by -6.3 % per year for five years (discount rate 8.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +2.6 % per year. As of Nov 10, 2026.
What discount rate (WACC) does the fair value of HRB use?
Our models discount H&R Block Inc at 8.5 %: a base by market capitalisation (mid), damped by beta 0.41, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For H&R Block Inc that is -6.3 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (8.5 %) and the same formula as our fair value.
How much growth has H&R Block Inc (HRB) delivered so far?
Over the past 5 years revenue at H&R Block Inc grew +2.6 % a year. The price currently implies free-cash-flow growth of -6.3 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of H&R Block Inc (HRB) growing?
The median revenue growth in the sector is +4.7 % a year. That is the yardstick for the growth priced into H&R Block Inc (-6.3 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of H&R Block Inc (HRB)?
The free-cash-flow yield on the price is 11.68 %: that much free cash flow H&R Block Inc produces per unit of market value. When it exceeds the discount rate of our models (8.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of H&R Block Inc (HRB)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For H&R Block Inc it is $92.29 per share (as of Nov 10, 2026), against a price of $50.98. It is the blended result of 17 valuation models in 7 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Growth DCF, Economic Profit, Growth Earnings).
Is H&R Block Inc stock overvalued or undervalued in 2026?
As of Nov 10, 2026, HRB trades below its calculated fair value: price $50.98, fair value $92.29, a gap of about +81% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of HRB?
No. The price is what the market pays today ($50.98); the fair value is what the company's own numbers justify ($92.29). For H&R Block Inc the two are $41.31 per share apart. That gap is exactly why we show both numbers side by side.
How much is H&R Block Inc worth?
The market values H&R Block Inc at about $6.5B (market capitalisation, as of Nov 10, 2026). Per share that is $50.98; our models calculate a fair value of $92.29 per share.
What do the bullish and bearish scenarios say about HRB?
Our models span a range for H&R Block Inc: cautious scenario $40.72, base $92.29, optimistic $118.17 per share (as of Nov 10, 2026, price $50.98). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of HRB?
H&R Block Inc trades at a price-to-earnings ratio of 9.0 (as of Nov 10, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $92.29 is built from several models across several years. Excluding one-off items of fiscal year 2026 it is 9.6 (reported for FY2026: 8.6). Median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings, FY2020, FY2021, FY2026 ex one-offs: 11.7. Other multiples: PEG 0.7, P/S 1.6, EV/EBITDA 6.8.
What is the PEG ratio of HRB?
The PEG ratio of H&R Block Inc is 0.67 (P/E divided by earnings growth, as of Nov 10, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of H&R Block Inc (HRB)?
Balance-sheet figures for H&R Block Inc (as of Nov 10, 2026): return on equity 71.4%, debt of 12.70 per unit of equity. They feed the Quality Score of 73/100, which measures business quality independently of the share price.
How far is HRB from its 52-week high?
H&R Block Inc trades at $50.98, about 8% below its 52-week high of $55.47 and 86% above the low of $27.41 (as of Nov 9, 2026). Distance from the high says nothing about value: that is what the fair value of $92.29 is for.
Which stocks are comparable to H&R Block Inc?
From the same area (Consumer Cyclical) we also value Rollins, Inc, Service Corporation, Frontdoor, Inc, Bright Horizons Family Solutions Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is H&R Block Inc stock attractive at the current price?
The data as of Nov 10, 2026: price $50.98, calculated fair value $92.29 (+81%), Quality Score 73/100, from 17 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of HRB calculated?
We run H&R Block Inc through 17 models from 7 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $92.29 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.7% above its aggregate fair value. H&R Block Inc currently trades 45% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of H&R Block Inc (HRB)?
The closing price on Nov 9, 2026 was $50.98. Our model-based fair value is $92.29, about +81% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with H&R Block Inc right now?
The model range is unusually wide ($40.72 to $118.17). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid quality (73/100) at a price below fair value, the discount is the argument here, not the business quality.
Where does the earnings growth of H&R Block Inc (HRB) come from?
Earnings per share at H&R Block Inc grew +11.5 % a year from 2015 to 2026. Broken into its drivers: revenue per share +9.3 %, EBIT margin −0.7 %, tax rate +2.0 %, residual (interest, one-offs) +0.7 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of H&R Block Inc
How large is the market capitalisation of H&R Block Inc (HRB)?
The market capitalisation of H&R Block Inc is $6.5B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of H&R Block Inc (HRB)?
The price-to-sales ratio of H&R Block Inc is 1.64 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of H&R Block Inc (HRB)?
Earnings per share at H&R Block Inc are $5.69 (price ÷ EPS = P/E 9.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of H&R Block Inc (HRB)?
The dividend yield of H&R Block Inc is 3.3% (payout 33.1%, on adjusted earnings, reported 29.5%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of H&R Block Inc (HRB)?
The net margin of H&R Block Inc is 18.6% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of H&R Block Inc (HRB)?
The return on equity (ROE) of H&R Block Inc is 71.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of H&R Block Inc (HRB)?
On an EBIT basis the return on assets of H&R Block Inc is 11.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of H&R Block Inc (HRB)?
The operating margin of H&R Block Inc is 32.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at H&R Block Inc (HRB)?
Revenue at H&R Block Inc is growing +3.0% versus a year earlier (3y avg +4.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at H&R Block Inc (HRB)?
Earnings per share at H&R Block Inc are growing +4.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does H&R Block Inc (HRB) carry?
The net debt of H&R Block Inc is $1.1B (fiscal year 2026, ≈ 1.5 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 10, 2026