If you are wondering whether Jack Henry & Associates is priced attractively at its recent levels, this article walks through what the current share price might be implying about the company’s value.
The stock last closed at US$189.16, with returns of 6.1% over the past week, 0.9% over the last 30 days, 6.1% year to date, 11.5% over 1 year, 8.3% over 3 years, and 30.2% over 5 years.
Recent coverage of Jack Henry & Associates has focused on its role as a provider of technology and payment services to financial institutions. This keeps investor attention on how stable and recurring its business may be. News flow has also highlighted ongoing interest in companies that support banking and payments infrastructure, giving extra context to the recent share price moves.
On Simply Wall St’s valuation checks, Jack Henry & Associates scores 1 out of 6 for undervaluation, as shown in this valuation score. We will look at several valuation methods next and then finish by showing you an even more rounded way to think about what the stock could be worth.
Jack Henry & Associates scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
The Excess Returns model looks at how much profit a company is expected to earn above the return that shareholders require, based on the equity they have invested. In simple terms, it compares the value created on top of the cost of equity capital.
For Jack Henry & Associates, the model uses a Book Value of $29.96 per share and a Stable EPS of $7.72 per share, based on the median return on equity from the past 5 years. The Average Return on Equity is 21.27%, while the Cost of Equity is $2.67 per share. The difference between earnings and this cost is the Excess Return, which is estimated at $5.05 per share.
The analysis also assumes a Stable Book Value of $36.28 per share, informed by weighted future book value estimates from 2 analysts. Combining these inputs, the Excess Returns framework produces an estimated intrinsic value of about $159.37 per share.
Compared with the recent share price of $189.16, this suggests the stock is around 18.7% overvalued based on this method.
Result: OVERVALUED
Our Excess Returns analysis suggests Jack Henry & Associates may be overvalued by 18.7%. Discover 882 undervalued stocks or create your own screener to find better value opportunities.
JKHY Discounted Cash Flow as at Jan 2026
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Jack Henry & Associates.
For a profitable company like Jack Henry & Associates, the P/E ratio is a straightforward way to think about what you are paying for each dollar of earnings. It ties the share price directly to current earnings, which many investors use as a quick sense check of valuation.
What counts as a normal or fair P/E depends on how the market views a company’s growth outlook and risk profile. Higher growth and lower perceived risk can support a higher multiple, while slower growth or higher risk usually calls for a lower one.
Jack Henry & Associates currently trades on a P/E of 28.49x. This sits above the Diversified Financial industry average P/E of 14.99x, but below the peer group average of 32.38x. Simply Wall St’s Fair Ratio for the stock is 14.28x. This is a proprietary estimate of what the P/E might reasonably be given factors such as earnings growth, industry, profit margins, market cap and risk profile.
Because the Fair Ratio adjusts for these company specific drivers, it can be more informative than a simple comparison with peers or the broad industry. With the current P/E of 28.49x sitting well above the Fair Ratio of 14.28x, this approach points to the shares looking expensive on earnings.
Result: OVERVALUED
NasdaqGS:JKHY P/E Ratio as at Jan 2026
P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1444 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives, a simple tool on Simply Wall St’s Community page that lets you tie your own story about Jack Henry & Associates to concrete forecasts. You can focus on themes such as cloud adoption, digital banking usage, compliance demand or competition, then connect those themes to revenue, earnings and margin forecasts. From there, you can turn those forecasts into a fair value, compare that fair value with the current share price to help shape your buy or sell decisions, and see that view update automatically when new earnings, guidance or news arrive. This is why one investor might build a Narrative closer to the US$206.00 price target while another leans toward US$173.00, even though they are all looking at the same company.
Do you think there’s more to the story for Jack Henry & Associates? Head over to our Community to see what others are saying!
NasdaqGS:JKHY 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include JKHY.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]
