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

As of 17 October 2025, H&R Block, Inc. has moved from expensive to attractive, indicating a shift in its valuation outlook. The company is currently considered undervalued, supported by 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 is lower than Service Corp. International's 21.11 and Valvoline, Inc.'s 18.23, suggesting it may offer better value relative to its earnings potential.
Despite a challenging year-to-date return of -0.47% compared to the S&P 500's 13.30%, H&R Block has shown resilience with a 5-year return of 201.55%, significantly outperforming the S&P 500's 91.29% over the same period. This long-term performance, combined with its attractive valuation ratios, reinforces the notion that H&R Block is currently undervalued in the market.