Using the industry peer median P/E multiple (trailing + forward), Jack Henry & Associates, Inc. (JKHY) has a fair value of $96.18 based on 3 comparable companies in the Information Technology Services industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Jack Henry & Associates, Inc.JKHY | 11,522 | 25.3x | 30.5x |
| Akamai Technologies, Inc.AKAM | 16,933 | 38.1x | 17.0x |
| Skyworks Solutions, Inc.SWKS | 8,570 | 18.5x | 9.1x |
| EPAM Systems, Inc.EPAM | 7,547 | 20.3x | 12.7x |
| Industry Median | 20.3x | 12.7x | |
| (*) Profit after tax | 456 | 377 | |
| Equity Value | 9,266 | 4,785 | |
| (/) Outstanding shares | 73 | 73 | |
| Fair Price | $127 | $66 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.