• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    H&R Block (HRB): Assessing Valuation After Recent Share Price Decline

    Simply Wall St·11/17/2025 19:17:09
    Listen to the news
    H&R Block (HRB) has caught investors’ attention lately, especially with its shares drifting down by 13% over the past month. Amid the recent volatility, there is plenty to consider about the company’s current valuation and outlook.

    See our latest analysis for H&R Block.

    This latest downturn is part of a broader shift, as H&R Block’s share price has dropped by 16.6% year-to-date and slid 15.8% in just the past month. Momentum has clearly faded compared to its strong long-term track record. While the one-year total shareholder return sits at -24.6%, investors holding on for five years have still seen an impressive total return of 186%.

    If this pullback has you searching for new ideas, it could be a smart move to broaden your search and discover fast growing stocks with high insider ownership

    With shares trading at a notable discount to analyst price targets, but recent growth only modest, the key question becomes clear: is H&R Block undervalued and offering a buying opportunity, or is the market accurately pricing in its outlook?

    Most Popular Narrative: 19.5% Undervalued

    H&R Block’s most widely followed narrative calculates a fair value that is notably above the current share price, indicating room for upside if assumptions are met. The narrative considers factors like future revenue growth, margins, and expected profit expansion when setting that valuation context.

    H&R Block's continued expansion and innovation in digital tax solutions (DIY), including improvements in AI-powered features and successful cross-platform offerings (MyBlock app, Tax Pro Review), support higher client conversion rates among new users and premium SKUs. This should contribute meaningfully to both revenue growth and margin expansion.

    Read the complete narrative.

    Curious about what powers this optimistic price target? The key factors include shifting customer behavior, digital enhancements, and a bold forecast for both top-line and margin expansion. What is the key number that could surprise you? Dive into the full narrative to uncover the financial assumptions moving the needle on H&R Block’s valuation.

    Result: Fair Value of $55 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, persistent market share losses and rising competition from digital-first tax platforms could present challenges to H&R Block's earnings outlook in the coming years.

    Find out about the key risks to this H&R Block narrative.

    Build Your Own H&R Block Narrative

    If you see things differently or want to dig into the numbers on your own, it’s quick and easy to shape your own perspective in just a few minutes. Do it your way

    A great starting point for your H&R Block research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

    Looking for more investment ideas?

    Why limit your outlook to just one company? Use the Simply Wall Street Screener to uncover fresh investment angles and ensure you never miss emerging opportunities.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.