What is Tyler Technologies, Inc. (TYL) DCF Fair Value and Intrinsic Value in 2026?

Tyler Technologies, Inc. (TYL) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Tyler Technologies, Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

Tyler Technologies, Inc. operates in the Technology sector (Software - Application) with an economic moat rating of WIDE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Tyler Technologies, Inc.'s financial health rating and Piotroski F-Score?

Tyler Technologies, Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Tyler Technologies, Inc. (TYL) for quarterly SEC filing thesis breaks?

LocalAlpha audits Tyler Technologies, Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksTYL

TYL

Tyler Technologies, Inc.Technology / Software - ApplicationINTACT

Tyler Technologies, Inc. provides integrated software and technology management solutions for the public sector in the United States. It operates in two segments, Enterprise Software and Platform Technologies. The company designs, develops, markets, and supports a range of software solutions to serve mission-critical back-office functions. It also offers platform and transformative technology solutions, such as cybersecurity, data and insights, digital solutions, payments, platform technologies, and outdoor recreation; public administration solutions, including civic services, ERP, property and recording, and regulatory; and corrections, courts and justice, and public safety solutions. In addition, the company provides school ERP and student transportation K-12 education solutions; and health and human services solutions comprising environmental health, and disability and benefits. It has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was formerly known as Tyler Corporation and changed its name to Tyler Technologies, Inc. in June 1999. Tyler Technologies, Inc. was founded in 1966 and is based in Plano, Texas.

Share Price

$336.67

52W: $270.71 - $547.93

DCF Fair Value

$288.21

-16.8% Premium

Thesis Hub

P/E (TTM)

44.1x

ROIC

11%

Operating Margin

14.7%

FCF Yield

4.3%

Debt / Equity

0.48x

Piotroski Score

8/9

Altman Z-Score

3.19

Market Cap

$13.8B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($288.21)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$288.21

MOS Buy Target (-25%)

$216.16

Valuation Overlays: DCF Fair Value ($288.21) 25% MOS Buy Target ($216.16) Revised Graham ($136.57) Graham Number ($112.94)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$336.67

DCF Fair Value

$287.09

-17.3% Premium

Starting Free Cash Flow ($M)$594M

$100M$594M (Reported)$50,000M

Stage 1 Growth (Years 1-5)7.3%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$500M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$5.3B

PV of Terminal Value

$7.0B

Implied Enterprise Value

$12.3B

Implied Equity Value

$11.8B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$637	$684	$734	$787	$845	$883	$923	$964	$1,008	$1,053
Present Value (PV)	$585	$576	$567	$558	$549	$526	$505	$484	$464	$445

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-198.1% Premium

$112.94

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $7.64BVPS: $74.20

Revised Graham Formula-146.5% Premium

$136.57

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings4.1% Yield

$13.76 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $0.6BYield: 4.1%

Reverse DCF: Market Growth Expectation

FAIR BARRIER

7.6% CAGR (Next 10 Yrs)

At the current price of $336.67, the market is assuming the business will compound Free Cash Flow at 7.6% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil TYL with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Tyler Technologies, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 14.7% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Tyler Technologies, Inc. (TYL) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Tyler Technologies, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Tyler Technologies, Inc. has an estimated DCF intrinsic fair value of $288.21 per share compared to its current market price of $336.67. This represents an estimated 16.8% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $112.94.