H&R Block, Inc. (NYSE:HRB) shareholders that were waiting for something to happen have been dealt a blow with a 27% share price drop in the last month. Instead of being rewarded, shareholders who have already held through the last twelve months are now sitting on a 37% share price drop.
In spite of the heavy fall in price, H&R Block may still be sending very bullish signals at the moment with its price-to-earnings (or “P/E”) ratio of 6.8x, since almost half of all companies in the United States have P/E ratios greater than 20x and even P/E’s higher than 35x are not unusual. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly reduced P/E.
