Assessing H&R Block (HRB) Valuation as Growth Moderates and Shares Lag the Market

H&R Block (HRB) shares have lagged the broader market over the past year, falling 14% while the S&P 500 posted solid gains. Investors are weighing how the company’s steady growth compares to ongoing sector shifts.

See our latest analysis for H&R Block.

H&R Block’s share price return has continued to soften this year, slipping 6.3% year-to-date after a 14.1% total return loss over the past year, as investors rethink the company’s next phase of growth versus market opportunities. Despite the pressure, its impressive 237% total shareholder return over five years highlights how long-term holders have been well rewarded even as shorter-term momentum has faded.

If you're interested in what else the market has to offer, it's a great moment to broaden your perspective and discover fast growing stocks with high insider ownership

With shares trading below analyst price targets and growth moderating, the question becomes whether H&R Block is now undervalued or if the current stock price already reflects future expectations. Is there a buying opportunity here, or is the market already factoring that in?

Most Popular Narrative: 9.6% Undervalued

With H&R Block closing at $49.74, the most widely followed narrative estimates a fair value of $55.00 per share. This suggests some room for upside if the assumptions hold. The current share price leaves a modest discount to the narrative’s consensus valuation, prompting close attention to the underlying growth story.

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. These trends are expected to contribute meaningfully to both revenue growth and margin expansion.

Read the complete narrative.

What is powering this estimate? H&R Block’s future hinges on a technology shift, premium customer acquisition, and a projected step up in profits. Want to know which key forecast leaves rivals trailing and what big financial rebound the current price might be missing out on? Uncover the narrative’s bold assumptions and see what could spark a valuation reset.

Result: Fair Value of $55.00 (UNDERVALUED)

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

However, competition from digital-first rivals and shifting consumer preferences toward online tax solutions could challenge H&R Block’s traditional strengths and growth outlook.

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

Build Your Own H&R Block Narrative

If you want to test your own outlook or challenge this viewpoint, you can dig into the data and shape a personalized narrative in just minutes. Do it your way

A great starting point for your H&R Block research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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.

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