Discounted Cash Flow (DCF) Analysis Levered

H&R Block, Inc. (HRB)

$31.75

+0.06 (+0.19%)

All numbers are in Millions, Currency in USD

Stock DCF: 35.25 | 31.75 | undervalue

Free Cash Flow

Year A/P	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	2,639.72	3,413.99	3,463.27	3,996.18	4,611.09	5,320.62	6,139.33	7,084.02	8,174.07
Revenue (%)
Operating Cash Flow	108.96	625.93	-0.78	0.50	258.82	298.65	344.60	397.62	458.81
Operating Cash Flow (%)
Capital Expenditure	-81.69	-52.79	-0.04	-0.06	-53.53	-61.76	-71.27	-82.24	-94.89
Capital Expenditure (%)
Free Cash Flow	27.28	573.14	-0.82	0.44	205.29	236.88	273.33	315.39	363.92

Weighted Average Cost Of Capital

Share price	$ 31.75
Beta	0.678
Diluted Shares Outstanding	188.78
Cost of Debt
Tax Rate	15.99
After-tax Cost of Debt	3.86%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.947
Total Debt	1,922.59
Total Equity	5,993.67
Total Capital	7,916.26
Debt Weighting	24.29
Equity Weighting	75.71
Wacc

Build Up Free Cash Flow

Year A/P	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	2,639.72	3,413.99	3,463.27	3,996.18	4,611.09	5,320.62	6,139.33	7,084.02	8,174.07
Operating Cash Flow	108.96	625.93	-0.78	0.50	258.82	298.65	344.60	397.62	458.81
Capital Expenditure	-81.69	-52.79	-0.04	-0.06	-53.53	-61.76	-71.27	-82.24	-94.89
Free Cash Flow	27.28	573.14	-0.82	0.44	205.29	236.88	273.33	315.39	363.92
WACC
PV LFCF				0.35	151.97	165.11	179.40	194.92	211.78
SUM PV LFCF									1,148.87

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.20
Free cash flow (t + 1)	371.20
Terminal Value	8,838.05
Present Value of Terminal Value	6,542.35

Intrinsic Value

Enterprise Value	7,691.22
Net Debt	1,037.58
Equity Value	6,653.64
Shares Outstanding	188.78
Equity Value Per Share	35.25