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Tyler Technologies, Inc. — Intrinsic Value & Fair Price

TYL
NYSETechnologySoftware - ApplicationCIK 0000860731tylertech.comAbout TYL
Last close · Oct 16, 2026360.87−2.75 (−0.76%)
Market cap$14.8B
Model value · DCF · Perpetuity growth · 5y
213.64
Tyler Technologies closed at $360.87 — overvalued by 69% vs model.
142.83the model's range483.04

DCF · Perpetuity growth · 5y leads for a software company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
85.41 – 697.78
Wall St. target
400.00 10% below
Above model, 1y
20 of 20 days

Price and model value

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Research on TYL

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How it is valued

Valued asSoftware
Low/slowing growth (~9% recent)Moderate margins (14% net margin)Moderately volatile earnings
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for software companies
Price / sales
6.7×
Revenue growth
9.1%
Gross margin
44.0%
FCF margin
27.3%
Rule of 40
36.4%
Operating margin
15.3%
Full financials

Superinvestors

13F

None of the tracked managers reported a position in their latest 13F.

All 0 holders

Analyst actions

third-party, quoted
10-12Wells Fargo · “Overweight” from “Equal Weight”upgrade
10-12Wells Fargo · target400.00
10-08Goldman Sachs · “Neutral” from “Buy”downgrade
10-08Goldman Sachs · target345.00
Ratings, targets and estimates

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just TYL. No account.

About Tyler Technologies

Tyler Technologies, Inc. specializes in delivering comprehensive information management solutions and services tailored for the public sector. Its operations are organized into three primary divisions: Enterprise Software, Appraisal and Tax, and NIC. The company's extensive product portfolio encompasses financial management tools, such as modular fund accounting systems designed for government bodies and non-profit organizations, as well as utility billing platforms for managing both metered and unmetered services. Additionally, Tyler offers solutions that automate a wide array of municipal and county operations, ranging from municipal court and parking ticket administration to animal and business licensing, permits and inspections, code enforcement, citizen complaint resolution, ambulance billing, fleet maintenance, and cemetery records management. Educational institutions, particularly K-12 schools, benefit from their specialized student information and transportation management systems. Furthermore, the company delivers a comprehensive suite of judicial technologies, including systems for court case management, integrated court and law enforcement functions, prosecutor support, and supervision. These solutions are scalable for diverse needs, from single-county deployments to multi-jurisdictional or statewide implementations. Their offerings extend to public safety software, alongside systems designed for the automated appraisal and assessment of both real and personal property, complemented by tax billing and collection applications for relevant agencies. Public sector agencies also leverage Tyler's software for planning, regulatory compliance, and maintenance operations. Dedicated applications enhance and automate records and document management, while their data and insights solutions provide valuable analytical capabilities. Beyond core software, Tyler Technologies facilitates Software-as-a-Service (SaaS) deployments and provides electronic document filing solutions for legal and judicial entities. Their service portfolio is robust, encompassing software and hardware installation, data conversion, user training, product customization, and ongoing maintenance and support. They also offer outsourced property appraisal services to taxing authorities. A strategic collaboration agreement with Amazon Web Services (AWS) underscores the company's commitment to cloud-based hosting solutions. Established in 1966, Tyler Technologies, Inc. maintains its headquarters in Plano, Texas.

CEO
H. Lynn Moore Jr.
Headquarters
Plano, TX
Employees
7,879
IPO
1980-03-17
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.