Discounted Cash Flow (DCF) Analysis Levered

H&R Block, Inc. (HRB)

$33.08

+0.14 (+0.43%)
All numbers are in Millions, Currency in USD
Stock DCF: 68.08 | 33.08 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 3,036.313,159.933,094.882,639.723,413.993,555.993,703.893,857.954,018.414,185.55
Revenue (%)
Operating Cash Flow 550.09850606.54108.96625.93619.29645.04671.87699.82728.93
Operating Cash Flow (%)
Capital Expenditure -89.26-98.58-95.49-81.69-52.79-98.04-102.12-106.37-110.79-115.40
Capital Expenditure (%)
Free Cash Flow 460.84751.42511.0527.28573.14521.24542.92565.51589.03613.53

Weighted Average Cost Of Capital

Share price $ 33.08
Beta 0.775
Diluted Shares Outstanding 188.78
Cost of Debt
Tax Rate 12.70
After-tax Cost of Debt 4.81%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.447
Total Debt 1,939.06
Total Equity 6,244.74
Total Capital 8,183.80
Debt Weighting 23.69
Equity Weighting 76.31
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 3,036.313,159.933,094.882,639.723,413.993,555.993,703.893,857.954,018.414,185.55
Operating Cash Flow 550.09850606.54108.96625.93619.29645.04671.87699.82728.93
Capital Expenditure -89.26-98.58-95.49-81.69-52.79-98.04-102.12-106.37-110.79-115.40
Free Cash Flow 460.84751.42511.0527.28573.14521.24542.92565.51589.03613.53
WACC
PV LFCF 491.46482.65474465.51457.17
SUM PV LFCF 2,370.80

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.06
Free cash flow (t + 1) 625.80
Terminal Value 15,413.71
Present Value of Terminal Value 11,485.48

Intrinsic Value

Enterprise Value 13,856.27
Net Debt 1,004.81
Equity Value 12,851.47
Shares Outstanding 188.78
Equity Value Per Share 68.08