- JTH Holding (TAX) trades at only a 6.2x EBITDA multiple due to concern more customers will shift to electronic tax filing as well as concern increasing regulatory scrutiny over tax settlement products may result in lower revenue or increased costs.
- However data shows a constant mix between paid tax prep and Do It Yourself (DIY) while a quick and effective response to changing regulation for tax settlement products allows TAX to continue to offer this value-added and differentiated product.
- Moreover, an attractive business model and multiple growth opportunities should continue to drive strong revenue and EBITDA growth.
JTH Holding (the parent of Liberty Tax Service) provides federal and state tax prep services and related...
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