H&R Block Inc (HRB) is undervalued and Service Corp International (SCI) is overvalued.
Against our estimates of intrinsic value, HRB trades at the wider discount: a margin of safety of +58%, against -24% for SCI.
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 8.0% (average of 3 methods) values the shares at $63.03; the price of $78.11 is 24% above that value, and 79% of that value comes from beyond year five.
Leak Score 30/100 on 3 of 12 signals
| Metric | HRB | SCI |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $42.86 | $78.11 |
| Intrinsic value | $101.68 | $63.03 |
| Margin of safety | +58% | -24% |
| Leak Score | 100/100 (3/12) | 30/100 (3/12) |
| Market cap | $5.3B | $10.6B |
| Revenue growth, 5 years | 2.9% | 4.2% |
| Operating margin | 23.9% | 22.4% |
| Net margin | 18.4% | 12.3% |
| Return on equity | 707.5% | 34.7% |
| Debt to equity | 17.89 | 3.45 |
| P/E | 7.5x | 20.4x |
| Forward P/E | 6.2x | 17.0x |
| P/B | 45.3x | 6.9x |
| Dividend yield | 4.3% | 1.8% |