Using the PEG framework with analyst consensus forward EPS growth of 9.0% plus 1.4% dividend yield, Jack Henry & Associates, Inc. has a fair value of $60.53 based on NTM EPS (FY2026) of $6.70. The current PEG ratio is 2.61.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG tends to undervalue slow growers — consider dividend yield and asset value instead.
| EPS Growth RateForward | 7.6% |
| Dividend Yield | +1.4% |
| Adjusted Growth (clamped 8–25%) | 9.0% |
| Fair P/E | 9.0x |
| NTM EPS (FY2026) | $6.70 |
| Fair Value | $60.53 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $6.24 | — | — |
| FY2026E | $6.70 | +7.4% | 11 |
| FY2027E | $7.18 | +7.2% | 11 |
| FY2028E | $7.77 | +8.2% | 8 |
3Y Forward EPS CAGR: 7.6%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $311.5M | $4.12 | — |
| FY2022 | $362.9M | $4.94 | +19.9% |
| FY2023 | $366.6M | $5.02 | +1.6% |
| FY2024 | $381.8M | $5.23 | +4.2% |
| FY2025 | $455.7M | $6.24 | +19.3% |
4Y Historical EPS CAGR: 10.9%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.