Discounted Cash Flow (DCF) Analysis Levered
H&R Block, Inc. (HRB)
$43.02
+0.63 (+1.49%)
All numbers are in Millions, Currency in USD
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 | 3,094.88 | 2,639.72 | 3,413.99 | 3,463.27 | 3,472.18 | 3,613.90 | 3,761.39 | 3,914.91 | 4,074.69 | 4,241 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 606.54 | 108.96 | 625.93 | 808.54 | 821.84 | 643.82 | 670.10 | 697.44 | 725.91 | 755.54 |
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 | 511.05 | 27.28 | 573.14 | 746.58 | 752.14 | 560.54 | 583.41 | 607.23 | 632.01 | 657.80 |
Weighted Average Cost Of Capital
Share price | $ 43.02 |
---|---|
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 | 7.685 |
Total Debt | 1,934.91 |
Total Equity | 6,604.09 |
Total Capital | 8,538.99 |
Debt Weighting | 22.66 |
Equity Weighting | 77.34 |
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 | 3,094.88 | 2,639.72 | 3,413.99 | 3,463.27 | 3,472.18 | 3,613.90 | 3,761.39 | 3,914.91 | 4,074.69 | 4,241 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 606.54 | 108.96 | 625.93 | 808.54 | 821.84 | 643.82 | 670.10 | 697.44 | 725.91 | 755.54 |
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 | 511.05 | 27.28 | 573.14 | 746.58 | 752.14 | 560.54 | 583.41 | 607.23 | 632.01 | 657.80 |
WACC | ||||||||||
PV LFCF | 525.78 | 513.31 | 501.14 | 489.25 | 477.65 | |||||
SUM PV LFCF | 2,507.13 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 6.61 |
Free cash flow (t + 1) | 670.96 |
Terminal Value | 14,554.44 |
Present Value of Terminal Value | 10,568.31 |
Intrinsic Value
Enterprise Value | 13,075.44 |
---|---|
Net Debt | 947.93 |
Equity Value | 12,127.51 |
Shares Outstanding | 153.51 |
Equity Value Per Share | 79.00 |