Discounted Cash Flow (DCF) Analysis Levered

H&R Block, Inc. (HRB)

$42.59

+0.54 (+1.28%)
All numbers are in Millions, Currency in USD
Stock DCF: 80.90 | 42.59 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 3,094.882,639.723,413.993,463.273,472.183,613.903,761.393,914.914,074.694,241
Revenue (%)
Operating Cash Flow 606.54108.96625.93808.54821.84643.82670.10697.44725.91755.54
Operating Cash Flow (%)
Capital Expenditure -95.49-81.69-52.79-61.95-69.70-83.28-86.68-90.22-93.90-97.73
Capital Expenditure (%)
Free Cash Flow 511.0527.28573.14746.58752.14560.54583.41607.23632.01657.80

Weighted Average Cost Of Capital

Share price $ 42.59
Beta 0.642
Diluted Shares Outstanding 153.51
Cost of Debt
Tax Rate 22.15
After-tax Cost of Debt 2.94%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.574
Total Debt 1,934.91
Total Equity 6,538.08
Total Capital 8,472.98
Debt Weighting 22.84
Equity Weighting 77.16
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 3,094.882,639.723,413.993,463.273,472.183,613.903,761.393,914.914,074.694,241
Operating Cash Flow 606.54108.96625.93808.54821.84643.82670.10697.44725.91755.54
Capital Expenditure -95.49-81.69-52.79-61.95-69.70-83.28-86.68-90.22-93.90-97.73
Free Cash Flow 511.0527.28573.14746.58752.14560.54583.41607.23632.01657.80
WACC
PV LFCF 526.28514.28502.55491.09479.89
SUM PV LFCF 2,514.09

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.51
Free cash flow (t + 1) 670.96
Terminal Value 14,877.15
Present Value of Terminal Value 10,853.45

Intrinsic Value

Enterprise Value 13,367.54
Net Debt 947.93
Equity Value 12,419.60
Shares Outstanding 153.51
Equity Value Per Share 80.90