What is H&R Block, Inc. (HRB)'s PEG ratio?

H&R Block, Inc. (HRB) has a PEG ratio of 0.42 (Potentially Undervalued), based on a PE ratio of 5.6 and expected EPS growth of 13.2% (5-Year EPS CAGR).

Is HRB undervalued based on its PEG ratio?

A PEG below 1.0 is conventionally read as potentially undervalued, 1.0–2.0 as fairly valued, and above 2.0 as potentially overvalued relative to growth. At 0.42, H&R Block, Inc. (HRB) screens as "Potentially Undervalued". PEG is one signal, not investment advice — see the full DCF fair value at evidinvest.com/valuation/HRB.

H&R Block, Inc. (HRB) PEG Ratio

Potentially Undervalued

PE ratio relative to earnings growth — is the valuation justified?

0.42

PEG Ratio

0.42

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$32.18

TTM EPS

$5.74

P/E Ratio

5.61

Growth Rate

13.2%

5-Year EPS CAGR

Sector

Consumer Cyclical

Personal Products & Services

Calculated

8/18/2026

9:32:48 AM

Peer Comparison

Sample Size

4 peers

Industry Median PEG

1.29

25th Percentile

0.48

75th Percentile

3.07

HRB PEG (0.42) vs Industry Median (1.29): 67% discount

Symbol	Company	PEG	P/E	Growth	vs HRB
CSV	Carriage Services, Inc.	0.47	14.0	29.6%	+11%
BFAM	Bright Horizons Family Solutions Inc.	0.48	23.8	49.8%	+12%
ROL	Rollins, Inc.	2.11	32.7	15.5%	+397%
SCI	Service Corporation International	3.07	17.1	5.6%	+622%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.

H&R Block, Inc. (HRB) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on HRB

Compare with peers

Explore

H&R Block, Inc. (HRB) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on HRB

Compare with peers

Explore