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, especially when considering its P/E ratio of 16, which is lower than the peer average of 21.11 for Service Corp. International and 18.23 for Valvoline, Inc. Additionally, H&R Block's EV to EBITDA stands at 11.10, which is more attractive compared to the industry average, suggesting potential for growth.
In terms of returns, H&R Block has shown a 5-year return of 201.55%, significantly outperforming the S&P 500's 91.29% over the same period, although it has underperformed in the shorter term, with a year-to-date return of -0.47% compared to the S&P 500's 13.30%. This mixed performance reinforces the notion that while the stock may be undervalued currently, it has the potential for recovery and growth in the long term.