H&R Block, Inc. (HRB): Undervalued Tax Preparation and Financial Services Company
Wednesday, September 16, 2026 · Johnny Hopkins
As part of our ongoing series at The Acquirer’s Multiple, each week we highlight a stock from our Stock Screeners that may represent an undervalued opportunity hiding in plain sight.
This week’s spotlight is H&R Block, Inc. (HRB) — one of the largest tax preparation and financial services companies in the United States.
Despite operating in a mature industry, H&R Block continues to generate substantial earnings and free cash flow, while its valuation suggests investors may be overlooking the strength of its cash-generative business model.
Business Overview
H&R Block provides tax preparation and related financial services, primarily through:
✓ Assisted tax preparation services
✓ Online and software-based tax filing
✓ Small-business tax services
✓ Financial products and services
✓ Digital tax and financial solutions
What Is IV/P (Intrinsic Value to Price)?
IV/P compares a conservative intrinsic valuation to the current market price.
IV/P > 1 → Undervalued
IV/P < 1 → Overvalued
HRB’s IV/P = 1.20, suggesting the stock may be trading below conservative intrinsic value estimates.
Supporting Metrics (Currency in USD)
Revenue (TTM): ≈ $3.95B
Operating Income (TTM): ≈ $907.7M
Net Income (TTM): ≈ $729.9M
Free Cash Flow (TTM): ≈ $756.1M
Acquirer’s Multiple (AM): 7.40
An Acquirer’s Multiple of 7.40 places H&R Block among the attractively valued companies currently appearing on our Screener.
Revenue & Profitability
H&R Block continues to demonstrate strong profitability and steady revenue growth.
TTM revenue stands at approximately $3.95 billion, up from approximately $3.47 billion in 2023. Operating income has also increased from approximately $748.7 million in 2023 to $907.7 million, while net income has risen to approximately $729.9 million.
Balance Sheet & Cash Flow
Total Assets: ≈ $3.26B
Total Liabilities: ≈ $3.14B
Total Equity: ≈ $117.5M
Total Debt: ≈ $2.10B
Operating Cash Flow (TTM): ≈ $838.7M
H&R Block’s balance sheet carries meaningful debt, but the company continues to produce substantial cash flow. Free cash flow reached approximately $756.1 million over the trailing twelve months.
The company has also been an aggressive buyer of its own shares, repurchasing approximately $512.9 million of stock during the latest fiscal year.
Why HRB May Be Attractive
Key risks include competition from online tax-preparation platforms, changes to tax regulations, increasing automation, relatively high debt, and the highly seasonal nature of the business.
However, HRB combines strong profitability, substantial free cash flow, ongoing share repurchases, an Acquirer’s Multiple of 7.40, and an IV/P of 1.20.
Conclusion
With an IV/P of 1.20 and an Acquirer’s Multiple of 7.40, H&R Block screens as an interesting value opportunity.
Its strong cash generation, growing earnings, and shareholder-focused capital allocation make HRB worthy of further research.