4 models fit Jack Henry & Associates Inc. Common Stock and they disagree: 1 of 4 land within 15% of the average.
Two or more of our models back this value.
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Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionJack Henry & Associates Inc. Common Stock (JKHY)
Fair value (4 models)
$142
ACCE price target
$155
Rating
Overvalued
Horizon
12 months
Fair value published on 20 Oct 2026, 15:04 CEST; previously $153 since 11 Oct 2026, 00:00 CEST.
ACCE price target published on 10 Oct 2026, 00:00 CEST.
Price used: $163 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
14.8% above
-12.9% to fair value
ACCE score
61
out of 100
Analysts
71% buy
21 covering
P/E
23.3x
forward 20.6x
1-year return
+4.4%
Dividend yield
1.51%
Jack Henry & Associates Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Jack Henry sells core processing software and payments services to small and mid-sized U.S. banks and credit unions, with its Symitar and Core Director platforms holding the bulk of the installed base. The moat is switching cost: converting a community bank's core system is a multi-year, high-risk project, so recurring revenue from these contracts is sticky and largely insulated from churn. Revenue growth of 4.7% is modest, but it sits alongside a 22.5% operating margin and a 24.0% ROE, which points to a business that converts its revenue into cash efficiently. At a 22.1x trailing and 20.2x forward P/E, the stock is priced for steady rather than accelerating growth, so the case rests on whether margin expansion from cloud migration and payments cross-selling can outpace the top line. Those are the questions to take into a deeper look.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
moderate
Earnings declining despite revenue growth
Revenue grew 4.7% YoY but earnings fell 10.4%, so profit is not keeping pace with the top line. Operating margin of 22.5% is still healthy, so this bears watching rather than alarm.
moderate
Score down 7 points in 90 days
The ACCE score fell from 62 to 55 over 90 days, with growth (G:28) and margin (M:40) the weakest components. Current fair value of $155.00 sits slightly below the $156.47 price.
AI research notes
AI-assisted·How I use AIWritten Oct 16, 2026 · figures from 2026-10-15 · prices to Oct 23, 2026
Why it could do well
Jack Henry turns a large share of revenue into cash, with free cash flow of $695M over the last twelve months.
The company carries almost no debt, with debt to equity of 0.02, leaving little financial strain.
Why it could disappoint
The share price sits slightly above the consensus fair value of $154.08, so the stock looks fully priced on that measure.
Revenue grew only 4.7% last year, below its 7.3% average over five years, so growth is slowing.
The stock trades at a forward P/E of 20.2x against a sector median of 29.1x, which reflects a discount the market may see as deserved given slower growth.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 3, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where JKHY's valuation models land
Price
$162.55
Model fair value
$142
Model range
$67.70 to $198
Fair value $142
Price $163
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
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Quality and conviction INVESTOR FEATURE
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