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

As of 17 October 2025, the valuation grade for H&R Block, Inc. moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued 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. In comparison to peers, H&R Block's P/E ratio of 13.76 is notably lower than Service Corp. International's 21.11 and Valvoline, Inc.'s 18.23, suggesting it may be undervalued relative to its industry.
Despite a challenging year with a YTD return of -0.47% compared to the S&P 500's 13.30%, H&R Block has shown resilience over the longer term, with a 5-year return of 201.55% versus the S&P's 91.29%. This long-term performance, combined with its attractive valuation ratios, supports the conclusion that H&R Block is currently undervalued.