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
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 | 3,036.31 | 3,159.93 | 3,094.88 | 2,639.72 | 3,413.99 | 3,555.99 | 3,703.89 | 3,857.95 | 4,018.41 | 4,185.55 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 550.09 | 850 | 606.54 | 108.96 | 625.93 | 619.29 | 645.04 | 671.87 | 699.82 | 728.93 |
| 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 | 460.84 | 751.42 | 511.05 | 27.28 | 573.14 | 521.24 | 542.92 | 565.51 | 589.03 | 613.53 |
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 | 3,036.31 | 3,159.93 | 3,094.88 | 2,639.72 | 3,413.99 | 3,555.99 | 3,703.89 | 3,857.95 | 4,018.41 | 4,185.55 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 550.09 | 850 | 606.54 | 108.96 | 625.93 | 619.29 | 645.04 | 671.87 | 699.82 | 728.93 |
| 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 | 460.84 | 751.42 | 511.05 | 27.28 | 573.14 | 521.24 | 542.92 | 565.51 | 589.03 | 613.53 |
| WACC | ||||||||||
| PV LFCF | 491.46 | 482.65 | 474 | 465.51 | 457.17 | |||||
| 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 |