HRB
H&R Block, Inc.
$44.88
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 48.2% below fair value
You pay
$44.88
Bear
$69.36
Fair
$86.70
Bull
$104.04
Bear
$69.36
+54.5%
$5.78 × 12x P/E
Fair
$86.70
+93.2%
$5.78 × 15x P/E
Bull
$104.04
+131.8%
$5.78 × 18x P/E
Adjust Assumptions
15.0x
5.78$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
7.8x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (16 analysts)
$46.50
Divergence from AlphaVal
86%
Summary
Applying a 15x P/E to adjusted EPS of $5.78, the base-case value is $86.70 per share.
Warnings
Wall Street's average price target is $46.50 (from 16 analysts). Our estimate is 86% above the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples