Tyler Technologies, Inc. logo TYL - Tyler Technologies, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 25
HOLD 12
SELL 0
STRONG
SELL
0
| PRICE TARGET: $435.30 DETAILS
HIGH: $543.00
LOW: $340.00
MEDIAN: $432.50
CONSENSUS: $435.30
UPSIDE: 38.23%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 85% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Mild
Trading 4.2% above fair value
Current Price $314.91
Bear Case $239.63 23.9% downside ($239.63 - $314.91) / $314.91 = -23.9% 5% stage 1 growth, 11% discount
Fair Value $302.35 4.0% downside ($302.35 - $314.91) / $314.91 = -4.0% 8% stage 1 growth, 11% discount
Bull Case $361.19 14.7% upside ($361.19 - $314.91) / $314.91 = 14.7% 11% stage 1 growth, 11% discount

Adjust Assumptions

8.3%
11.0%
3.0%

Key Value Driver

FCF growth rate (8% base case)

Terminal Value % of EV 37%
Implied Market Multiple 24.5x
Market is pricing in (growth) 11.7% vs our 8.3% base

Plain-Language Summary

Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $435.30 from 37 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $302.35 per share.

Warnings

Stock-based employee pay equals 48% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
Wall Street's average price target is $435.30 (from 37 analysts). Our estimate is 44% below the consensus -- consider that gap carefully.

Key Risks

  • P/E alone misleads — earnings depressed by growth investment
  • Cyclical or commodity businesses may be misclassified as platforms
  • Terminal value dominance suggests sensitivity to long-run assumptions