Frontdoor Inc vs H&R Block Inc

Frontdoor Inc (FTDR) is slightly overvalued and H&R Block Inc (HRB) is undervalued.

Against our estimates of intrinsic value, HRB trades at the wider discount: a margin of safety of +58%, against -17% for FTDR.

Values as of the 22 Sept 2026 close.

Frontdoor Inc (FTDR)

Discounting its cash flows at 10.7% (average of 3 methods) values the shares at $66.20; the price of $77.19 is 17% above that value, and 71% of that value comes from beyond year five.

Leak Score 59/100 on 3 of 12 signals

H&R Block Inc (HRB)

Discounting its cash flows at 7.1% (average of 3 methods) values the shares at $101.68; the price of $42.86 is 58% below that value, and 83% of that value comes from beyond year five.

Leak Score 100/100 on 3 of 12 signals

MetricFTDRHRB
VerdictSlightly overvaluedUndervalued
Price$77.19$42.86
Intrinsic value$66.20$101.68
Margin of safety-17%+58%
Leak Score59/100 (3/12)100/100 (3/12)
Market cap$5.3B$5.3B
Revenue growth, 5 years7.3%2.9%
Operating margin20.1%23.9%
Net margin12.8%18.4%
Return on equity101.9%707.5%
Debt to equity4.1517.89
P/E20.4x7.5x
Forward P/E14.9x6.2x
P/B18.8x45.3x
Dividend yield4.3%

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