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 2,639.723,413.993,463.273,996.184,611.095,320.626,139.337,084.028,174.07
Revenue (%)
Operating Cash Flow 108.96625.93-0.780.50258.82298.65344.60397.62458.81
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 27.28573.14-0.820.44205.29236.88273.33315.39363.92

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 2,639.723,413.993,463.273,996.184,611.095,320.626,139.337,084.028,174.07
Operating Cash Flow 108.96625.93-0.780.50258.82298.65344.60397.62458.81
Capital Expenditure -81.69-52.79-0.04-0.06-53.53-61.76-71.27-82.24-94.89
Free Cash Flow 27.28573.14-0.820.44205.29236.88273.33315.39363.92
WACC
PV LFCF 0.35151.97165.11179.40194.92211.78
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