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
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 |