Discounted Cash Flow (DCF) Analysis Unlevered
H&R Block, Inc. (HRB)
$42.885
+0.49 (+1.17%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Actual | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
Revenue | 3,094.88 | 2,639.72 | 3,413.99 | 3,463.27 | 3,472.18 | 3,613.90 | 3,761.39 | 3,914.91 | 4,074.69 | 4,241 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
EBITDA | 798.91 | 368.26 | 932.46 | 889.53 | 914.69 | 860.87 | 896 | 932.57 | 970.63 | 1,010.25 |
EBITDA (%) | ||||||||||
EBIT | 632.21 | 198.72 | 775.61 | 747.35 | 784.19 | 685.47 | 713.45 | 742.57 | 772.88 | 804.42 |
EBIT (%) | ||||||||||
Depreciation | 166.69 | 169.54 | 156.85 | 142.18 | 130.50 | 175.40 | 182.55 | 190 | 197.76 | 205.83 |
Depreciation (%) |
Balance Sheet Data
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Actual | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
Total Cash | 1,572.15 | 2,661.91 | 934.25 | 885.01 | 986.98 | 1,683.96 | 1,752.69 | 1,824.22 | 1,898.68 | 1,976.17 |
---|---|---|---|---|---|---|---|---|---|---|
Total Cash (%) | ||||||||||
Account Receivables | 138.96 | 133.20 | 531.24 | 261.28 | 95.90 | 255.89 | 266.33 | 277.20 | 288.51 | 300.29 |
Account Receivables (%) | ||||||||||
Inventories | 281.96 | 291.33 | 233.66 | 311.60 | 312.40 | 325.15 | 338.42 | 352.23 | 366.61 | 381.57 |
Inventories (%) | ||||||||||
Accounts Payable | 249.52 | 203.10 | 198.08 | 160.93 | 159.90 | 222.69 | 231.78 | 241.24 | 251.09 | 261.34 |
Accounts Payable (%) | ||||||||||
Capital Expenditure | -95.49 | -81.69 | -52.79 | -61.95 | -69.70 | -83.28 | -86.68 | -90.22 | -93.90 | -97.73 |
Capital Expenditure (%) |
Weighted Average Cost Of Capital
Share price | $ 42.885 |
---|---|
Beta | 0.642 |
Diluted Shares Outstanding | 153.51 |
Cost of Debt | |
Tax Rate | 22.15 |
After-tax Cost of Debt | 2.94% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 7.681 |
Total Debt | 1,934.91 |
Total Equity | 6,583.36 |
Total Capital | 8,518.27 |
Debt Weighting | 22.71 |
Equity Weighting | 77.29 |
Wacc |
Build Up Free Cash
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Actual | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
Revenue | 3,094.88 | 2,639.72 | 3,413.99 | 3,463.27 | 3,472.18 | 3,613.90 | 3,761.39 | 3,914.91 | 4,074.69 | 4,241 |
---|---|---|---|---|---|---|---|---|---|---|
EBITDA | 798.91 | 368.26 | 932.46 | 889.53 | 914.69 | 860.87 | 896 | 932.57 | 970.63 | 1,010.25 |
EBIT | 632.21 | 198.72 | 775.61 | 747.35 | 784.19 | 685.47 | 713.45 | 742.57 | 772.88 | 804.42 |
Tax Rate | 22.50% | -123.06% | 12.70% | 15.99% | 22.15% | -9.94% | -9.94% | -9.94% | -9.94% | -9.94% |
EBIAT | 489.98 | 443.26 | 677.09 | 627.84 | 610.52 | 753.64 | 784.39 | 816.41 | 849.73 | 884.41 |
Depreciation | 166.69 | 169.54 | 156.85 | 142.18 | 130.50 | 175.40 | 182.55 | 190 | 197.76 | 205.83 |
Accounts Receivable | - | 5.77 | -398.05 | 269.96 | 165.39 | -159.99 | -10.44 | -10.87 | -11.31 | -11.78 |
Inventories | - | -9.37 | 57.67 | -77.93 | -0.80 | -12.75 | -13.27 | -13.81 | -14.38 | -14.96 |
Accounts Payable | - | -46.42 | -5.02 | -37.15 | -1.03 | 62.79 | 9.09 | 9.46 | 9.85 | 10.25 |
Capital Expenditure | -95.49 | -81.69 | -52.79 | -61.95 | -69.70 | -83.28 | -86.68 | -90.22 | -93.90 | -97.73 |
UFCF | 561.18 | 481.09 | 435.75 | 862.93 | 834.88 | 735.80 | 865.64 | 900.97 | 937.74 | 976.02 |
WACC | ||||||||||
PV UFCF | 690.25 | 761.77 | 743.77 | 726.20 | 709.04 | |||||
SUM PV UFCF | 3,631.03 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 6.60 |
Free cash flow (t + 1) | 995.54 |
Terminal Value | 21,642.13 |
Present Value of Terminal Value | 15,722.22 |
Intrinsic Value
Enterprise Value | 19,353.25 |
---|---|
Net Debt | 947.93 |
Equity Value | 18,405.32 |
Shares Outstanding | 153.51 |
Equity Value Per Share | 119.89 |