Is H&R Block, Inc. overvalued or undervalued?

As of 7 November 2024, H&R Block, Inc. has moved from an attractive to a risky valuation grade, indicating a shift in investor sentiment. The company appears to be overvalued based on its current metrics, with a P/E ratio of 16, an EV to EBIT of 12.65, and an EV to EBITDA of 11.10. Notably, the price-to-book value stands at a concerning -50.97, which is a significant red flag for potential investors.
In comparison to peers, H&R Block's P/E ratio of 15.58 is lower than that of Service Corp. International, which has a P/E of 21.34 and is considered attractive. Conversely, Rollins, Inc. is categorized as expensive with a P/E of 57.29. The recent stock performance shows that H&R Block has outperformed the S&P 500 over the past week but has underperformed over the longer term, particularly in the last month and year. Overall, the valuation metrics suggest that H&R Block is overvalued in the current market environment.