Jack Henry & Associates, Inc. (JKHY) DCF Valuation
TGM's two-stage DCF values Jack Henry & Associates, Inc. (JKHY) between $131.85 and $255.93 depending on assumptions, with a base case of $179.60. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use)), fading to 2.5% long-run; the discount rate (7.5%) reflects its beta.
What would today's price require?
$128.71 is justified only if free cash flow grows about +0.1% a year (fading to 2.5% long-run) at a 7.5% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 4.9%/yr | 8.5% | $131.85 |
| Base case | 7.9%/yr | 7.5% | $179.60 |
| Optimistic | 10.9%/yr | 6.5% | $255.93 |
| Analyst DCF (FMP) | independent reference — different model | $209.82 | |
Current Price
$128.71
Market-Implied Growth
+0.1%/yr
vs +16.5% 5Y actual
Model Scenario Range
$131.85 – $255.93
model output — not a price target
JKHY DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for JKHY (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $489.9M · 0.07B shares · net cash $102.0M
Estimated Fair Value
$218.53
+69.8% vs $128.71
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 7.9%/yr FCF growth and 10-year horizon fixed. Green = above today's $128.71; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.5% | $299 | $331 | $375 | $435 | $527 |
| 6.5% | $235 | $254 | $277 | $307 | $347 |
| 7.5% | $193 | $205 | $219 | $236 | $257 |
| 8.5% | $163 | $171 | $180 | $191 | $203 |
| 9.5% | $141 | $146 | $152 | $159 | $168 |
About Jack Henry & Associates, Inc.
Jack Henry & Associates, Inc. operates as a financial technology company that connects people and financial institutions through technology solutions and payment processing services. It operates through four segments: Core, Payments, Complementary, and Corporate and Other. The Core segment provides core information processing platforms to banks and credit unions, which consist of integrated applications required to process deposit, loan, general ledger transactions, and maintain centralized accountholder information. The Payments segment offers secure payment processing tools and services, including ATM, automated clearing house origination and remote deposit capture processing, and risk management products and services, as well as debit and credit card processing services, and online and mobile bill pay solutions. The Complementary segment provides software, and hosted processing platforms and services comprising digital/mobile banking, treasury, online account opening, fraud/anti-money laundering, and lending/deposit solutions. The Corporate and Other segment offers hardware and other products. It offers specialized financial performance, imaging and payment, information security and risk management, retail delivery, and online and mobile solutions to financial services organizations and corporate entities. The company also provides SilverLake system, a system primarily designed for commercial-focused banks; Symitar, a system designed for credit unions; CIF 20/20, a parameter-driven system for banks; and Core Director, a system with point-and-click operation for banks. It provides digital products and services under the Banno Digital Platform, and electronic payment solutions; hardware systems; implementation, training, and support and service solutions; data center solutions; and data and transaction processing, and software licensing and related services, as well as professional services. The company was founded in 1976 and is headquartered in Monett, Missouri.
- Sector
- Technology
- Industry
- Software - Services
- CEO
- Gregory R. Adelson