Cass Information Systems, Inc.

CASS

IndustrialsSpecialty Business ServicesNASDAQ

$47.66

Market Cap: $613.37M

Cass Information Systems, Inc. (CASS) Valuation Summary

Updated May 10, 2026 05:08

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$151.84 – $379.54	$209.28	+339.1%
Growth Exit 10Y	$165.25 – $397.22	$224.53	+371.2%
EBITDA Exit 5Y	$192.14 – $323.21	$252.39	+429.6%
EBITDA Exit 10Y	$194.28 – $342.24	$257.90	+441.2%
▸ Trading Multiples
P/E	$28.25 – $82.44	$35.51	-25.5%
EV/EBITDA	$49.11 – $83.54	$62.31	+30.8%
EV/Revenue	$40.63 – $60.77	$42.29	-11.3%
▸ PEG
PEG Fair Value	$24.99 – $24.99	$24.99	-47.6%
▸ Earnings Power Value
Earnings Power Value	$131.40 – $175.16	$149.43	+213.6%
▸ Dividend Discount
Dividend Discount	$14.81 – $35.05	$21.46	-55.0%

Valuation History

DCF Analysis

Fair Value

$209.28

Market Price

$47.66

Upside / Downside

+339.1%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Cass Information Systems, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 7.6% to 5.3% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 2083, DPO 22886, DIO 60). At a 8.5% WACC with mid-year discounting, the terminal value (79% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $209.28 per share, suggesting CASS is undervalued by 339.1% at the current price of $47.66.

FCFF Present Value Calculation

WACC

8.53%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	178	188	198	209	220	226
(−) Net Interest	0	0	0	0	0	0
(+) D&A	8	9	9	8	8	8
EBITDA	186	197	208	217	228	234

(−) Tax	34	35	37	39	41	42
(−) CapEx	8	9	9	10	10	10
(−) ΔWC	122	6	6	7	7	7
Free Cash Flow (FCFF)	23	147	155	161	170	174

Terminal Value						2,882
WACC / Discount Rate	8.5%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	22	130	126	121	117	1,914

Enterprise Value	2,430
Projection Period	516	21.2%
Terminal Value	1,914	78.8%

(−) Current Net Debt	(388)

Equity Value	2,817
(/) Outstanding Shares	13

Fair Price	$209.28

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.5%	$256	$277	$303	$336	$380
7.5%	$217	$230	$247	$266	$291
8.5%	$189	$198	$209	$222	$238
9.5%	$168	$175	$183	$192	$202
10.5%	$152	$157	$163	$169	$176

Current price: $47.66. Green = undervalued, Red = overvalued.

Fair Value

$224.53

Market Price

$47.66

Upside / Downside

+371.2%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Cass Information Systems, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 7.6% to 3.4% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 2083, DPO 22886, DIO 60). At a 8.5% WACC with mid-year discounting, the terminal value (60% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $224.53 per share, suggesting CASS is undervalued by 371.2% at the current price of $47.66.

FCFF Present Value Calculation

WACC

8.53%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	178	188	198	209	220	231	241	252	261	270	277
(−) Net Interest	0	0	0	0	0	0	0	0	0	0	0
(+) D&A	8	9	9	8	8	9	10	10	11	11	11
EBITDA	186	197	208	217	228	240	251	262	272	281	288

(−) Tax	34	35	37	39	41	44	45	47	49	51	52
(−) CapEx	8	9	9	10	10	11	11	12	12	12	13
(−) ΔWC	122	6	6	7	7	7	7	6	6	6	6
Free Cash Flow (FCFF)	23	147	155	161	170	179	188	196	204	212	217

Terminal Value											3,604
WACC / Discount Rate	8.5%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	22	130	126	121	117	114	110	106	102	97	1,589

Enterprise Value	2,635
Projection Period	1,046	39.7%
Terminal Value	1,589	60.3%

(−) Current Net Debt	(388)

Equity Value	3,023
(/) Outstanding Shares	13

Fair Price	$224.53

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.5%	$285	$304	$327	$357	$397
7.5%	$240	$252	$266	$283	$304
8.5%	$208	$215	$225	$235	$248
9.5%	$184	$189	$195	$202	$211
10.5%	$165	$169	$173	$178	$184

Current price: $47.66. Green = undervalued, Red = overvalued.

Fair Value

$252.37

Market Price

$47.66

Upside / Downside

+429.6%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Cass Information Systems, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 7.6% to 5.3% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 2083, DPO 22886, DIO 60). At a 8.5% WACC with mid-year discounting, the terminal value (83% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 16.1x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $252.39 per share, suggesting CASS is undervalued by 429.6% at the current price of $47.66.

FCFF Present Value Calculation

WACC

8.53%

3% – 20%

EV/EBITDA Exit Multiple

16.05x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	178	188	198	209	220	226
(−) Net Interest	0	0	0	0	0	0
(+) D&A	8	9	9	8	8	8
EBITDA	186	197	208	217	228	234

(−) Tax	34	35	37	39	41	—
(−) CapEx	8	9	9	10	10	—
(−) ΔWC	122	6	6	7	7	—
Free Cash Flow (FCF)	23	147	155	161	170	—

Peers' EBITDA Multiple						16.1x
Terminal Value						3,756
WACC / Discount Rate	8.53%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	22	130	126	121	117	2,494

Enterprise Value	3,010
Projection Period	516	17.1%
Terminal Value	2,494	82.9%

(−) Current Net Debt	(388)
Equity Value	3,398
(÷) Outstanding Shares	13M
Fair Price	$252	+429.6%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	12.1x	14.1x	16.1x	18.1x	20.1x
6.5%	$222	$247	$273	$298	$323
7.5%	$214	$238	$262	$286	$311
8.5%	$206	$229	$252	$275	$299
9.5%	$199	$221	$243	$265	$287
10.5%	$192	$213	$234	$255	$276

Current price: $47.66. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$257.89

Market Price

$47.66

Upside / Downside

+441.2%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Cass Information Systems, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 7.6% to 3.4% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 2083, DPO 22886, DIO 60). At a 8.5% WACC with mid-year discounting, the terminal value (66% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 16.1x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $257.90 per share, suggesting CASS is undervalued by 441.2% at the current price of $47.66.

FCFF Present Value Calculation

WACC

8.53%

3% – 20%

EV/EBITDA Exit Multiple

16.05x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	178	188	198	209	220	231	241	252	261	270	277
(−) Net Interest	0	0	0	0	0	0	0	0	0	0	0
(+) D&A	8	9	9	8	8	9	10	10	11	11	11
EBITDA	186	197	208	217	228	240	251	262	272	281	288

(−) Tax	34	35	37	39	41	44	45	47	49	51	—
(−) CapEx	8	9	9	10	10	11	11	12	12	12	—
(−) ΔWC	122	6	6	7	7	7	7	6	6	6	—
Free Cash Flow (FCF)	23	147	155	161	170	179	188	196	204	212	—

Peers' EBITDA Multiple											16.1x
Terminal Value											4,623
WACC / Discount Rate	8.53%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	22	130	126	121	117	114	110	106	102	97	2,038

Enterprise Value	3,084
Projection Period	1,046	33.9%
Terminal Value	2,038	66.1%

(−) Current Net Debt	(388)
Equity Value	3,472
(÷) Outstanding Shares	13M
Fair Price	$258	+441.2%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	12.1x	14.1x	16.1x	18.1x	20.1x
6.5%	$251	$274	$297	$320	$342
7.5%	$235	$256	$276	$297	$318
8.5%	$220	$239	$258	$277	$296
9.5%	$207	$224	$241	$258	$275
10.5%	$194	$210	$226	$241	$257

Current price: $47.66. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$35.51

Market Price

$47.66

Upside / Downside

-25.5%

Verdict

Overvalued

Using the industry peer median P/E Multiples multiple (trailing + forward), Cass Information Systems, Inc. (CASS) has a fair value of $35.51 based on 6 comparable companies in the Specialty Business Services industry.

P/E Valuation — Specialty Business Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Cass Information Systems, Inc.CASS	642	18.3x	22.3x
NWPX Infrastructure, Inc.NWPX	1,084	31.6x	34.2x
Covenant Logistics Group, Inc.CVLG	835	123.1x	10.3x
Kforce Inc.KFRC	775	22.2x	16.3x
Spire Global, Inc.SPIR	541	10.8x	—
Ennis, Inc.EBF	523	12.5x	12.1x
Strata Critical Medical, Inc.SRTA	462	10.7x	—
Industry Median		17.3x	14.2x
(*) Profit after tax		35	29
Equity Value		608	348
(/) Outstanding shares		13	13
Fair Price		$45	$26

Selected Fair Value (avg of trailing + forward)

$35.51

-25.5%

Fair Value

$62.31

Market Price

$47.66

Upside / Downside

+30.8%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Cass Information Systems, Inc. (CASS) has a fair value of $62.31 based on 7 comparable companies in the Specialty Business Services industry.

EV/EBITDA Valuation — Specialty Business Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Cass Information Systems, Inc.CASS	642	6.5x	6.4x
Eastman Kodak CompanyKODK	1,114	19.0x	1.9x
NWPX Infrastructure, Inc.NWPX	1,084	16.8x	16.9x
Covenant Logistics Group, Inc.CVLG	835	7.5x	7.7x
Kforce Inc.KFRC	775	16.1x	15.2x
Ennis, Inc.EBF	523	7.1x	6.4x
Falcon's Beyond Global, Inc. Class A Common StockFBYD	457	45.7x	—
Universal Logistics Holdings, Inc.ULH	354	6.3x	5.6x
Industry Median		16.1x	7.1x
(*) EBITDA		39	40
= Enterprise Value		622	280
(-) Net Debt		-388	-388
Equity Value		1,010	668
(/) Outstanding shares		13	13
Fair Price		$75	$50

Selected Fair Value (avg of trailing + forward)

$62.31

+30.8%

Fair Value

$42.29

Market Price

$47.66

Upside / Downside

-11.3%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Cass Information Systems, Inc. (CASS) has a fair value of $42.29 based on 8 comparable companies in the Specialty Business Services industry.

EV/Revenue Valuation — Specialty Business Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Cass Information Systems, Inc.CASS	642	1.3x	1.3x
Eastman Kodak CompanyKODK	1,114	1.0x	0.1x
NWPX Infrastructure, Inc.NWPX	1,084	2.3x	2.3x
Covenant Logistics Group, Inc.CVLG	835	0.8x	0.8x
Kforce Inc.KFRC	775	0.6x	0.6x
Ennis, Inc.EBF	523	1.3x	1.1x
Strata Critical Medical, Inc.SRTA	462	2.2x	1.8x
Falcon's Beyond Global, Inc. Class A Common StockFBYD	457	30.8x	—
Universal Logistics Holdings, Inc.ULH	354	0.8x	0.7x
Industry Median		1.1x	0.8x
(*) Revenue		191	195
= Enterprise Value		212	151
(-) Net Debt		-388	-388
Equity Value		599	539
(/) Outstanding shares		13	13
Fair Price		$45	$40

Selected Fair Value (avg of trailing + forward)

$42.29

-11.3%

PEG Fair Value

Fair Value

$24.99

Market Price

$47.66

Upside / Downside

-47.6%

Verdict

Overvalued

Using the PEG framework with historical EPS growth of 9.6% plus 2.7% dividend yield, the company has a fair value of $24.99 based on TTM EPS (FY2025) of $2.61. The current PEG ratio is 1.91.

PEG Ratio

1.91Pricey

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 18.3 ÷ (6.9% + 2.7%) = 1.91

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Slow GrowerPEG less reliable

PEG tends to undervalue slow growers — consider dividend yield and asset value instead.

Fair Value Calculation

EPS Growth RateHistorical	6.9%
Dividend Yield	+2.7%
Adjusted Growth (clamped 8–25%)	9.6%
Fair P/E	9.6x
TTM EPS (FY2025)	$2.61
Fair Value	$24.99

Growth Analysis

Forward Growth

No analyst estimates available.

Historical GrowthActive

Year	Net Income	EPS	YoY
FY2021	$28.6M	$2.00	—
FY2022	$34.9M	$2.53	+26.5%
FY2023	$30.1M	$2.18	-13.8%
FY2024	$19.2M	$1.39	-36.2%
FY2025	$35.1M	$2.61	+87.8%

4Y Historical EPS CAGR: 6.9%

Earnings Power Value

Fair Value

$149.43

Market Price

$47.66

Upside / Downside

+213.6%

Verdict

Undervalued

Using the Earnings Power Value framework with a WACC of 8.5% and normalized earnings of $138.6M, the company has a fair value of $149.43 per share. The EPV range is $131.40 – $175.16 based on WACC sensitivity (7.0% – 10.0%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	139	139	139
(/) WACC	10.0%	8.5%	7.0%
Enterprise Value	1,381	1,624	1,970
(-) Net debt	-388	-388	-388
Equity Value	1,769	2,012	2,358
(/) Outstanding shares	13	13	13
Fair Price	$131.40	$149.43	$175.16

Dividend Discount Model

Fair Value

$21.46

Market Price

$47.66

Upside / Downside

-55.0%

Verdict

Overvalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 8.6% and projected dividend growth of 3.3%, the fair value is $21.46 per share. The DDM range is $14.81 – $35.05 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$1.23

Dividend Yield

2.69%

Payout Ratio

47.0%

Dividend Coverage

2.13x

FCF Payout Ratio52.0%

DPS CAGR (4Y)3.3%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$1.23	47.0%	+2.6%
2024	$1.19	85.9%	+3.4%
2023	$1.16	53.1%	+3.3%
2022	$1.12	44.2%	+3.8%
2021	$1.08	54.0%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$1.27	3.3%	0.9211	$1.17
2027	$1.31	3.3%	0.8485	$1.11
2028	$1.35	3.3%	0.7816	$1.06
2029	$1.40	3.3%	0.7200	$1.00
2030	$1.44	3.3%	0.6632	$0.96
Terminal Value	$1.48 DPS	2.5%		$16.16

PV of Projected Dividends$5.29

PV of Terminal Value$16.16

Fair Value per Share$21.46

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	1.3%	2.3%	3.3%	4.3%	5.3%
6.6%	$29	$31	$32	$34	$35
7.6%	$24	$25	$26	$27	$28
8.6%	$20	$21	$21	$22	$23
9.6%	$17	$18	$18	$19	$20
10.6%	$15	$15	$16	$17	$18

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Cass Information Systems, Inc. (CASS) Valuation Summary

Updated May 10, 2026 05:08

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$151.84 – $379.54	$209.28	+339.1%
Growth Exit 10Y	$165.25 – $397.22	$224.53	+371.2%
EBITDA Exit 5Y	$192.14 – $323.21	$252.39	+429.6%
EBITDA Exit 10Y	$194.28 – $342.24	$257.90	+441.2%
▸ Trading Multiples
P/E	$28.25 – $82.44	$35.51	-25.5%
EV/EBITDA	$49.11 – $83.54	$62.31	+30.8%
EV/Revenue	$40.63 – $60.77	$42.29	-11.3%
▸ PEG
PEG Fair Value	$24.99 – $24.99	$24.99	-47.6%
▸ Earnings Power Value
Earnings Power Value	$131.40 – $175.16	$149.43	+213.6%
▸ Dividend Discount
Dividend Discount	$14.81 – $35.05	$21.46	-55.0%

Valuation History

DCF Analysis

Fair Value

$209.28

Market Price

$47.66

Upside / Downside

+339.1%

Verdict

Undervalued

FCFF Present Value Calculation

WACC

8.53%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	178	188	198	209	220	226
(−) Net Interest	0	0	0	0	0	0
(+) D&A	8	9	9	8	8	8
EBITDA	186	197	208	217	228	234

(−) Tax	34	35	37	39	41	42
(−) CapEx	8	9	9	10	10	10
(−) ΔWC	122	6	6	7	7	7
Free Cash Flow (FCFF)	23	147	155	161	170	174

Terminal Value						2,882
WACC / Discount Rate	8.5%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	22	130	126	121	117	1,914

Enterprise Value	2,430
Projection Period	516	21.2%
Terminal Value	1,914	78.8%

(−) Current Net Debt	(388)

Equity Value	2,817
(/) Outstanding Shares	13

Fair Price	$209.28

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.5%	$256	$277	$303	$336	$380
7.5%	$217	$230	$247	$266	$291
8.5%	$189	$198	$209	$222	$238
9.5%	$168	$175	$183	$192	$202
10.5%	$152	$157	$163	$169	$176

Current price: $47.66. Green = undervalued, Red = overvalued.

Fair Value

$224.53

Market Price

$47.66

Upside / Downside

+371.2%

Verdict

Undervalued

FCFF Present Value Calculation

WACC

8.53%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	178	188	198	209	220	231	241	252	261	270	277
(−) Net Interest	0	0	0	0	0	0	0	0	0	0	0
(+) D&A	8	9	9	8	8	9	10	10	11	11	11
EBITDA	186	197	208	217	228	240	251	262	272	281	288

(−) Tax	34	35	37	39	41	44	45	47	49	51	52
(−) CapEx	8	9	9	10	10	11	11	12	12	12	13
(−) ΔWC	122	6	6	7	7	7	7	6	6	6	6
Free Cash Flow (FCFF)	23	147	155	161	170	179	188	196	204	212	217

Terminal Value											3,604
WACC / Discount Rate	8.5%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	22	130	126	121	117	114	110	106	102	97	1,589

Enterprise Value	2,635
Projection Period	1,046	39.7%
Terminal Value	1,589	60.3%

(−) Current Net Debt	(388)

Equity Value	3,023
(/) Outstanding Shares	13

Fair Price	$224.53

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.5%	$285	$304	$327	$357	$397
7.5%	$240	$252	$266	$283	$304
8.5%	$208	$215	$225	$235	$248
9.5%	$184	$189	$195	$202	$211
10.5%	$165	$169	$173	$178	$184

Current price: $47.66. Green = undervalued, Red = overvalued.

Fair Value

$252.37

Market Price

$47.66

Upside / Downside

+429.6%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Cass Information Systems, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 7.6% to 5.3% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 2083, DPO 22886, DIO 60). At a 8.5% WACC with mid-year discounting, the terminal value (83% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 16.1x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $252.39 per share, suggesting CASS is undervalued by 429.6% at the current price of $47.66.

FCFF Present Value Calculation

WACC

8.53%

3% – 20%

EV/EBITDA Exit Multiple

16.05x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	178	188	198	209	220	226
(−) Net Interest	0	0	0	0	0	0
(+) D&A	8	9	9	8	8	8
EBITDA	186	197	208	217	228	234

(−) Tax	34	35	37	39	41	—
(−) CapEx	8	9	9	10	10	—
(−) ΔWC	122	6	6	7	7	—
Free Cash Flow (FCF)	23	147	155	161	170	—

Peers' EBITDA Multiple						16.1x
Terminal Value						3,756
WACC / Discount Rate	8.53%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	22	130	126	121	117	2,494

Enterprise Value	3,010
Projection Period	516	17.1%
Terminal Value	2,494	82.9%

(−) Current Net Debt	(388)
Equity Value	3,398
(÷) Outstanding Shares	13M
Fair Price	$252	+429.6%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	12.1x	14.1x	16.1x	18.1x	20.1x
6.5%	$222	$247	$273	$298	$323
7.5%	$214	$238	$262	$286	$311
8.5%	$206	$229	$252	$275	$299
9.5%	$199	$221	$243	$265	$287
10.5%	$192	$213	$234	$255	$276

Current price: $47.66. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$257.89

Market Price

$47.66

Upside / Downside

+441.2%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Cass Information Systems, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 7.6% to 3.4% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 2083, DPO 22886, DIO 60). At a 8.5% WACC with mid-year discounting, the terminal value (66% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 16.1x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $257.90 per share, suggesting CASS is undervalued by 441.2% at the current price of $47.66.

FCFF Present Value Calculation

WACC

8.53%

3% – 20%

EV/EBITDA Exit Multiple

16.05x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	178	188	198	209	220	231	241	252	261	270	277
(−) Net Interest	0	0	0	0	0	0	0	0	0	0	0
(+) D&A	8	9	9	8	8	9	10	10	11	11	11
EBITDA	186	197	208	217	228	240	251	262	272	281	288

(−) Tax	34	35	37	39	41	44	45	47	49	51	—
(−) CapEx	8	9	9	10	10	11	11	12	12	12	—
(−) ΔWC	122	6	6	7	7	7	7	6	6	6	—
Free Cash Flow (FCF)	23	147	155	161	170	179	188	196	204	212	—

Peers' EBITDA Multiple											16.1x
Terminal Value											4,623
WACC / Discount Rate	8.53%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	22	130	126	121	117	114	110	106	102	97	2,038

Enterprise Value	3,084
Projection Period	1,046	33.9%
Terminal Value	2,038	66.1%

(−) Current Net Debt	(388)
Equity Value	3,472
(÷) Outstanding Shares	13M
Fair Price	$258	+441.2%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	12.1x	14.1x	16.1x	18.1x	20.1x
6.5%	$251	$274	$297	$320	$342
7.5%	$235	$256	$276	$297	$318
8.5%	$220	$239	$258	$277	$296
9.5%	$207	$224	$241	$258	$275
10.5%	$194	$210	$226	$241	$257

Current price: $47.66. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$35.51

Market Price

$47.66

Upside / Downside

-25.5%

Verdict

Overvalued

P/E Valuation — Specialty Business Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Cass Information Systems, Inc.CASS	642	18.3x	22.3x
NWPX Infrastructure, Inc.NWPX	1,084	31.6x	34.2x
Covenant Logistics Group, Inc.CVLG	835	123.1x	10.3x
Kforce Inc.KFRC	775	22.2x	16.3x
Spire Global, Inc.SPIR	541	10.8x	—
Ennis, Inc.EBF	523	12.5x	12.1x
Strata Critical Medical, Inc.SRTA	462	10.7x	—
Industry Median		17.3x	14.2x
(*) Profit after tax		35	29
Equity Value		608	348
(/) Outstanding shares		13	13
Fair Price		$45	$26

Selected Fair Value (avg of trailing + forward)

$35.51

-25.5%

Fair Value

$62.31

Market Price

$47.66

Upside / Downside

+30.8%

Verdict

Undervalued

EV/EBITDA Valuation — Specialty Business Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Cass Information Systems, Inc.CASS	642	6.5x	6.4x
Eastman Kodak CompanyKODK	1,114	19.0x	1.9x
NWPX Infrastructure, Inc.NWPX	1,084	16.8x	16.9x
Covenant Logistics Group, Inc.CVLG	835	7.5x	7.7x
Kforce Inc.KFRC	775	16.1x	15.2x
Ennis, Inc.EBF	523	7.1x	6.4x
Falcon's Beyond Global, Inc. Class A Common StockFBYD	457	45.7x	—
Universal Logistics Holdings, Inc.ULH	354	6.3x	5.6x
Industry Median		16.1x	7.1x
(*) EBITDA		39	40
= Enterprise Value		622	280
(-) Net Debt		-388	-388
Equity Value		1,010	668
(/) Outstanding shares		13	13
Fair Price		$75	$50

Selected Fair Value (avg of trailing + forward)

$62.31

+30.8%

Fair Value

$42.29

Market Price

$47.66

Upside / Downside

-11.3%

Verdict

Overvalued

EV/Revenue Valuation — Specialty Business Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Cass Information Systems, Inc.CASS	642	1.3x	1.3x
Eastman Kodak CompanyKODK	1,114	1.0x	0.1x
NWPX Infrastructure, Inc.NWPX	1,084	2.3x	2.3x
Covenant Logistics Group, Inc.CVLG	835	0.8x	0.8x
Kforce Inc.KFRC	775	0.6x	0.6x
Ennis, Inc.EBF	523	1.3x	1.1x
Strata Critical Medical, Inc.SRTA	462	2.2x	1.8x
Falcon's Beyond Global, Inc. Class A Common StockFBYD	457	30.8x	—
Universal Logistics Holdings, Inc.ULH	354	0.8x	0.7x
Industry Median		1.1x	0.8x
(*) Revenue		191	195
= Enterprise Value		212	151
(-) Net Debt		-388	-388
Equity Value		599	539
(/) Outstanding shares		13	13
Fair Price		$45	$40

Selected Fair Value (avg of trailing + forward)

$42.29

-11.3%

PEG Fair Value

Fair Value

$24.99

Market Price

$47.66

Upside / Downside

-47.6%

Verdict

Overvalued

Using the PEG framework with historical EPS growth of 9.6% plus 2.7% dividend yield, the company has a fair value of $24.99 based on TTM EPS (FY2025) of $2.61. The current PEG ratio is 1.91.

PEG Ratio

1.91Pricey

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 18.3 ÷ (6.9% + 2.7%) = 1.91

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Slow GrowerPEG less reliable

PEG tends to undervalue slow growers — consider dividend yield and asset value instead.

Fair Value Calculation

EPS Growth RateHistorical	6.9%
Dividend Yield	+2.7%
Adjusted Growth (clamped 8–25%)	9.6%
Fair P/E	9.6x
TTM EPS (FY2025)	$2.61
Fair Value	$24.99

Growth Analysis

Forward Growth

No analyst estimates available.

Historical GrowthActive

Year	Net Income	EPS	YoY
FY2021	$28.6M	$2.00	—
FY2022	$34.9M	$2.53	+26.5%
FY2023	$30.1M	$2.18	-13.8%
FY2024	$19.2M	$1.39	-36.2%
FY2025	$35.1M	$2.61	+87.8%

4Y Historical EPS CAGR: 6.9%

Earnings Power Value

Fair Value

$149.43

Market Price

$47.66

Upside / Downside

+213.6%

Verdict

Undervalued

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	139	139	139
(/) WACC	10.0%	8.5%	7.0%
Enterprise Value	1,381	1,624	1,970
(-) Net debt	-388	-388	-388
Equity Value	1,769	2,012	2,358
(/) Outstanding shares	13	13	13
Fair Price	$131.40	$149.43	$175.16

Dividend Discount Model

Fair Value

$21.46

Market Price

$47.66

Upside / Downside

-55.0%

Verdict

Overvalued

Dividend Profile

Current DPS

$1.23

Dividend Yield

2.69%

Payout Ratio

47.0%

Dividend Coverage

2.13x

FCF Payout Ratio52.0%

DPS CAGR (4Y)3.3%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$1.23	47.0%	+2.6%
2024	$1.19	85.9%	+3.4%
2023	$1.16	53.1%	+3.3%
2022	$1.12	44.2%	+3.8%
2021	$1.08	54.0%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$1.27	3.3%	0.9211	$1.17
2027	$1.31	3.3%	0.8485	$1.11
2028	$1.35	3.3%	0.7816	$1.06
2029	$1.40	3.3%	0.7200	$1.00
2030	$1.44	3.3%	0.6632	$0.96
Terminal Value	$1.48 DPS	2.5%		$16.16

PV of Projected Dividends$5.29

PV of Terminal Value$16.16

Fair Value per Share$21.46

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	1.3%	2.3%	3.3%	4.3%	5.3%
6.6%	$29	$31	$32	$34	$35
7.6%	$24	$25	$26	$27	$28
8.6%	$20	$21	$21	$22	$23
9.6%	$17	$18	$18	$19	$20
10.6%	$15	$15	$16	$17	$18