Discounted Cash Flow

H&r Block Inc.

HRB · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $3.0b $374.3m $432.5m 12.3% $1.50
2017 $3.0b (-0.1%) $408.9m (9.3%) $460.8m (6.6%) 13.5% (9.3%) $1.92 (28.0%)
2018 $3.2b (4.1%) $613.1m (49.9%) $751.4m (63.1%) 19.4% (44.1%) $2.93 (52.6%)
2019 $3.1b (-2.1%) $422.5m (-31.1%) $511.0m (-32.0%) 13.7% (-29.6%) $2.05 (-30.0%)
2020 $2.6b (-14.7%) $-7.5m (-101.8%) $27.3m (-94.7%) -0.3% (-102.1%) $-0.04 (-102.0%)
2021 $3.4b (29.3%) $583.8m (7857.0%) $573.1m (2001.2%) 17.1% (6097.8%) $3.11 (7875.0%)
2022 $3.5b (1.4%) $553.7m (-5.2%) $746.6m (30.3%) 16.0% (-6.5%) $3.27 (5.1%)
2023 $3.5b (0.3%) $553.7m (0.0%) $752.1m (0.7%) 15.9% (-0.3%) $3.58 (9.5%)
2024 $3.6b (4.0%) $595.3m (7.5%) $657.2m (-12.6%) 16.5% (3.4%) $4.18 (16.8%)
2025 $3.8b (4.2%) $605.8m (1.8%) $598.8m (-8.9%) 16.1% (-2.3%) $4.45 (6.5%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model