Is Jack Henry & Associates, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Jack Henry & Associates, Inc. moved from attractive to very attractive. Despite this positive change, the company appears to be overvalued based on its current metrics. The P/E ratio stands at 43, significantly higher than the peer average of 36.61, while the EV to EBITDA ratio of 25.22 also exceeds the peer average of 21.45. Additionally, the PEG ratio is notably high at 5.51, indicating potential overvaluation when considering growth rates.
In comparison to its peers, Dynatrace, Inc. has a P/E of 30.53 and an EV to EBITDA of 57.11, while Manhattan Associates, Inc. shows a P/E of 59.33, suggesting that Jack Henry & Associates, Inc. is relatively more expensive. Furthermore, the company's stock has underperformed against the S&P 500 across multiple periods, with a year-to-date return of -11.88% compared to the S&P 500's 12.22%, reinforcing the notion that it may be overvalued at its current price of 154.47.