INTU — Intuit Inc.
Snapshot dated September 28, 2026.
Intuit Inc. is a financial technology company specializing in software solutions for accounting, tax preparation, and personal finance management. Its flagship products include TurboTax for consumer tax filing, QuickBooks for small business accounting and payroll, and Credit Karma for personalized financial recommendations. The company organizes its business into segments such as Small Business and Self-Employed Group, Consumer Group, and Credit Karma, which collectively serve millions of individual consumers and small businesses globally. Intuit functions as a dominant player in the financial software industry, competing against other tax software providers and cloud-based accounting platforms. Operating with a massive user base and a significant geographic footprint primarily across North America, the company derives the vast majority of its revenue from subscription-based models and transaction-based fees. Recently, the company has integrated artificial intelligence across its platform, branded as Intuit Assist, to provide automated financial insights and support for its user base.
Fair Value / Share
$734.34
Price on September 28, 2026
$271.00
Upside to fair value
170.97%
Margin of safety 63.1%
Upside is measured against what you pay; margin of safety is measured against what the business is worth.
Data by Equibles and SEC filings. Figures are as of September 28, 2026 and are not live.
Earnings Yield
Earnings Yield shows how much profit a company generates relative to its share price. EPS ÷ Stock Price.
Stock Price
$271.00
Market Cap
$75,067,000,000
Net Income (TTM)
$4,566,000,000
Diluted Shares
277.0 million
EPS (TTM)
$16.48
Earnings Yield
6.08%
AI Analysis
Intuit's earnings yield is 6.08%, calculated using an EPS of $16.48 and a stock price of $271.00. This yield sits above the 4-5% return available from a safe bond benchmark. Mechanically, this figure represents the theoretical annual return one would receive if the entire company were purchased at the current price and all earnings were kept. A 6.08% yield implies that for every dollar of earnings the company generates, the market is currently assigning a valuation that requires less aggressive growth expectations compared to a stock with a yield closer to the bond benchmark. If earnings were to decline, the yield would decrease, assuming the price remains constant. This measure does not capture future growth projections, capital reinvestment needs, or the risks associated with industry competition.
Return on Capital
EBIT ÷ (Net Working Capital + Net Fixed Assets) — how efficiently the business turns capital into profit.
EBIT (TTM)
$5,884,000,000
Net Working Capital
$1,692,000,000
Net Fixed Assets
$1,023,000,000
Invested Capital
$2,715,000,000
Return on Capital
216.72%
AI Analysis
Intuit Inc. currently demonstrates a return on capital of 216.72%, a figure derived from $5.9B in EBIT and $2.7B in total invested capital, which consists of $1.7B in net working capital and $1B in net fixed assets. This result sits well above the 30% benchmark typically used to indicate an efficient use of capital. By generating this level of profit relative to its relatively low tangible operating capital base, the business displays significant efficiency in its operations. It is important to note that this measure does not account for intangible factors such as brand strength or intellectual property, which may explain why some companies require very little physical capital to generate substantial earnings. If the company were to undertake significant capital-intensive acquisitions or expand its physical footprint, these inputs would shift, potentially lowering this percentage without necessarily implying a decline in underlying operational efficiency.
Acquirer's Multiple
Enterprise Value ÷ Operating Earnings — how many years of operating earnings it would take to buy the whole business.
| Company | Operating earnings | Enterprise value | Multiple |
|---|---|---|---|
| HRBH&R Block Inc | $934.5M | $6B | 6.4x |
| INTUIntuit Inc. | $6.2B | $78B | 12.6x |
| PAYXPaychex Inc | $2.6B | $40.1B | 15.5x |
Where INTU sits: 12.6x against a peer median of 10.9x (peers: 6.4x and 15.5x) — 15.4% above the median.
Show the enterprise value bridge for each companyHide the enterprise value bridge
INTU
Debt $7.7B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $752M of operating lease liabilities as of 2026-07-31 ($667M non-current, $85M current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
HRB
Named as a competitor: competes directly against TurboTax in consumer tax preparation software and services
Debt $1.5B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $610.9M of operating lease liabilities as of 2026-06-30 ($382.1M non-current, $228.8M current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
PAYX
Named as a competitor: competes against QuickBooks Payroll in small-to-midsize business payroll and HR software
Debt $4.6B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $62.9M of operating lease liabilities as of 2026-08-31. These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
Operating earnings — INTU
AI Analysis
Intuit Inc. (INTU) carries an enterprise value of $78B and TTM operating earnings of $6.2B, resulting in an Acquirer's Multiple of 12.6x. Among the companies analyzed, HRB presents the lowest multiple at 6.4x, while PAYX carries the highest at 15.5x. The computed comparison for INTU is 12.6x against a peer median of 10.9x (peers: 6.4x and 15.5x) — 15.4% above the median. The Acquirer's Multiple measures the price of a business relative to its core operating profitability, but it does not account for capital structure differences, such as debt levels or lease obligations, which can shift the enterprise value. The comparison between these companies would change if the underlying operating earnings converged or if differences in capital deployment or business model efficiencies narrowed the gap between their respective multiples.
FS-Score
A 10-check read on financial health, across profitability, balance-sheet stability and operating momentum.
FS-Score
9/10
This company scores high on profitability, stability, and momentum.
Section 1
Current Profitability
3/3
Profitability is Strong because the company produced positive net income and free cash flow relative to its asset base, while maintaining high-quality earnings backed by cash.
- Return on Assets reached 12.41% for the period.
- Free Cash Flow to Total Assets was positive at 23.55%.
- The accruals check passed with a 1.94 ratio of cash flow from operations to net income.
A score of 3/3 in this section indicates the business is currently generating a surplus; a reversal in the relationship between cash flow and net income would lower this result.
Return on Assets (ROA > 0)
PassFree Cash Flow to Total Assets (FCFTA > 0)
PassAccruals (CFO / Net Income > 1)
PassSection 2
Stability
2/3
Stability is Mixed because while liquidity improved and the share count was reduced, the company's long-term debt increased relative to its total assets.
- The leverage ratio increased slightly to 0.17 from 0.16 a year ago.
- The current ratio rose to 1.51 from 1.36, indicating higher liquidity.
- Net dilution was negative as diluted shares outstanding fell to 277.0 million from 283.0 million.
A rise in long-term debt relative to assets prevents a perfect score here, though it is balanced by the reduction in share count.
Change in Leverage (↓ or unchanged)
FailChange in Liquidity (↑ Current Ratio)
PassNet Dilution (annual diluted weighted-average shares, this year vs last)
PassSection 3
Recent Operational Improvements
4/4
Recent Operational Improvements are Strong, with the company demonstrating gains in efficiency, profitability, and pricing power across every tracked metric.
- Return on Assets improved to 12.41% from 10.47% last year.
- Free Cash Flow to Total Assets grew to 23.55% from 16.57%.
- Gross Margin expanded from 80.39% to 80.98%.
- Asset Turnover increased from 0.51 to 0.58.
This perfect section score indicates the business is becoming more efficient at turning its resources into revenue and cash compared to the prior year.
Change in ROA (↑)
PassChange in FCFTA (↑)
PassChange in Gross Margin (↑)
PassChange in Asset Turnover (↑)
PassFramework conclusion
The company earned a total score of 9/10, driven by Strong ratings in profitability and operational improvements. This high score suggests that if the stock's price is low, it is more likely due to a market mispricing than to a fundamental deterioration of the business. The only signal not suggesting improvement was the slight uptick in the leverage ratio.
- The 12.41% Return on Assets is an improvement over last year's 10.47%.
- Asset Turnover increased to 0.58 from 0.51, showing better utilization of assets.
- Gross Margin reached 80.98%, signaling stable or improving cost control.
- The leverage ratio of 0.17 is the only metric that did not improve year over year.
Intrinsic Value (DCF)
A 10-year discounted cash flow, then the bridge from business value to value per share.
Reported cash flow → unlevered free cash flow
Free Cash Flow (reported)
$8.7B
+ After-Tax Interest Expense
$194.3M
= Unlevered Free Cash Flow
$8.9B
Business value (10-year DCF)
PV of Years 1–10
$78B
PV of Terminal Value
$128.4B
= Business Value
$206.4B
Terminal value share
62.21%
Business value → share value
Intrinsic Value (business)
$206.4B
+ Cash & Equivalents
$4.7B
− Debt
$7.7B
= Shareholders' Value
$203.4B
÷ Diluted Shares
277.0 million
= Fair Value / Share
$734.34
Divided by 277.0 million diluted shares — the weighted-average diluted count from the most recent quarterly income statement, for the quarter ended 2026-07-31.
Risk bucket → discount rate
low (9%)
Year-1 FCF
$8.9B
Trailing twelve months.
FY2024 $4.7B · FY2025 $6.1B · FY2026 $8.7B
Growth rate (yrs 1–10)
8%
Terminal growth (after yr 10)
3%
AI Analysis
This valuation assumes a low-risk discount rate of 9%, chosen because Intuit operates with a dominant market position and benefits from highly sticky, recurring revenue streams in its accounting and tax software segments. The 10-year growth forecast of 8.00% balances the company's historical free cash flow compounding with a conservative outlook for the next decade. The model uses a fixed Year-1 free cash flow of $8.9B to initiate the forecast, while the 3% terminal growth rate is a fixed, system-wide assumption rather than a business-specific judgment. The resulting fair value per share is $734.34. Compared to the current price of $271.00, the upside to fair value is 170.97%. Because the price sits below this fair value estimate, the model calculates a margin of safety of 63.1%, representing the buffer the estimate carries for potential inaccuracy. It is important to note that the terminal value accounts for 62.2% of the total business value. This means the majority of the estimate relies on long-term performance assumptions. Consequently, the calculation is most sensitive to the terminal growth rate assumption, as any variation in that figure would have the largest impact on the final valuation result.
Overall Verdict
How the five signals above stack up together, then the full synthesis.
Earnings Yield
6.08% vs ~4-5% bond-yield benchmark
Return on Capital
216.72% ROC vs ~30% benchmark
Acquirer's Multiple
12.6x against a peer median of 10.9x (peers: 6.4x and 15.5x) — 15.4% above the median.
FS-Score
9/10 — Financial rockstar
Intrinsic Value
170.97% upside to fair value
Intuit Inc. displays strong operational efficiency and high financial stability, as evidenced by its 216.72% Return on Capital and 9/10 FS-Score. These metrics suggest the business generates substantial returns on the capital employed. This operational profile contrasts with the valuation measures, which present a mixed picture. While the Earnings Yield of 6.08% sits above the 4-5% bond-yield benchmark and the Intrinsic Value indicates a 170.97% upside to fair value, with a 63.1% margin of safety, the Acquirer's Multiple of 12.6x sits 15.4% above the 10.9x peer median. This tension suggests that while the internal mechanics of the business appear efficient, the market price currently factors in a premium relative to peers when measured by operating earnings. The overall picture is primarily defined by the robust internal financial health metrics. A shift in the Acquirer's Multiple, should it realign more closely with the peer median, would most significantly alter how the valuation framework positions this company.
Comments
Notes from readers on INTU — one each. Comments stay with the company, so they carry across to a later snapshot, and each one shows the date it was written.
Loading comments…