H&R Block Inc (HRB) is undervalued and Rollins Inc (ROL) is overvalued.
Against our estimates of intrinsic value, HRB trades at the wider discount: a margin of safety of +58%, against -46% for ROL.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 8.7% (average of 3 methods) values the shares at $22.51; the price of $32.86 is 46% above that value, and 77% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
| Metric | HRB | ROL |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $42.86 | $32.86 |
| Intrinsic value | $101.68 | $22.51 |
| Margin of safety | +58% | -46% |
| Leak Score | 100/100 (3/12) | 59/100 (3/12) |
| Market cap | $5.3B | $15.8B |
| Revenue growth, 5 years | 2.9% | 11.7% |
| Operating margin | 23.9% | 18.9% |
| Net margin | 18.4% | 13.6% |
| Return on equity | 707.5% | 37.0% |
| Debt to equity | 17.89 | 0.78 |
| P/E | 7.5x | 29.8x |
| Forward P/E | 6.2x | 25.6x |
| P/B | 45.3x | 11.1x |
| Dividend yield | 4.3% | 2.3% |