Should You Be Tempted To Buy H&R Block Inc (NYSE:HRB) At Its Current PE Ratio? – Simply Wall St News
This analysis is intended to introduce important early concepts to people who are starting to invest and want to begin learning about how to value company based on its current earnings and what are the drawbacks of this method.
H&R Block Inc (NYSE:HRB) is currently trading at a trailing P/E of 8.8x, which is lower than the industry average of 24.8x. Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind. Today, I will explain what the P/E ratio is as well as what you should look out for when using it.