On September 04, 2026, Tyler Technologies Inc TYL shares fell 4.0% today, closing at $364.03. This decline is notable within the context of a 52-week range that has seen a high of $566.58 and a low of $270.71.
- GF Valueâ„¢ verdict: The current price is $364.03, representing a 36.1% discount to the GF Valueâ„¢ estimate of $569.74.
- GF Scoreâ„¢ is 86/100, indicating a strong overall investment quality.
- Most notable signal: Insider activity shows a net selling of $12.7M over the past 12 months.
Is TYL Overvalued or Undervalued?
Tyler Technologies appears to be significantly undervalued based on the GF Value™ assessment, which estimates the fair value at $569.74. With the current trading price of $364.03, there is a substantial margin of safety of 36.1%. This suggests that, despite recent price fluctuations, there may be an opportunity for potential upside as the market corrects itself to align with the intrinsic value as defined by GuruFocus. GF Value™ is determined using a combination of historical trading multiples, business growth patterns, and projected future performance, reflecting a comprehensive analysis of the company’s worth.
However, while the undervaluation presents an attractive opportunity, investors should remain cautious due to the recent net selling by insiders, which may indicate a lack of confidence in the short-term performance of the stock. Additionally, the stock has faced considerable downward pressure over the past year, declining by 34.3%, which could signal underlying challenges that need to be addressed.
How Does TYL's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 48.3x | 96.4x |
| Forward P/E | 23.7x | N/A |
The current P/E ratio of 48.3x is significantly below its 5-year median of 96.4x. The forward P/E of 23.7x further confirms that the stock is trading at a lower valuation compared to its historical norms. This P/E analysis aligns with the GF Valueâ„¢ verdict, indicating that Tyler Technologies is not only undervalued but also presents a compelling case for potential price appreciation as market conditions stabilize.
What Does TYL's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ is a composite indicator that measures a stock's overall quality by assessing various factors, including financial health, profitability, and growth potential. Tyler Technologies boasts a strong GF Scoreâ„¢ of 86/100, reflecting solid performance across multiple dimensions.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 86 |
| Financial Strength | 7/10 |
| Profitability | 10/10 |
| Growth | 10/10 |
| Valuation | 4/10 |
| Momentum | 2/10 |
The strengths of Tyler Technologies lie in its exceptional profitability and growth scores, both rated at 10/10, indicating robust earnings and expansion potential. However, the valuation score of 4/10 and the momentum score of 2/10 suggest that the stock may be struggling to gain traction in the market, further highlighting the disparity between its current trading price and inherent value.
What Are Gurus and Insiders Doing with TYL?
Currently, 2 gurus hold shares of Tyler Technologies, with both increasing their positions and none trimming. This activity signals a positive outlook from these experienced investors, which could lend credence to the undervaluation narrative presented by the GF Valueâ„¢ assessment.
In terms of insider activity, over the past year, insiders have purchased $0.7M worth of stock while selling $13.4M. This results in a net selling of $12.7M, which could be interpreted as a lack of confidence among insiders regarding the company's immediate prospects. While guru activity is supportive, the selling by insiders raises questions about potential issues within the company's operations or market strategy.
What This Means for Investors
In summary, Tyler Technologies Inc is currently undervalued based on the GF Valueâ„¢ analysis, with a fair value estimate of $569.74 compared to the current price of $364.03, representing a significant opportunity for investors. However, the notable insider selling and recent price performance should not be overlooked, as they may indicate underlying challenges that need to be navigated. For a deeper understanding of the company's potential, please visit the Tyler Technologies Inc TYL stock page.
Frequently Asked Questions
What is TYL's GF Scoreâ„¢?
TYL has a GF Scoreâ„¢ of 86/100, indicating strong overall investment quality, with notable strengths in profitability and growth.
Is TYL overvalued or undervalued?
Based on the GF Valueâ„¢ estimate, TYL is undervalued, with a fair value of $569.74 compared to the current price of $364.03.
What is TYL's P/E ratio?
TYL's P/E (TTM) is 48.3x, which is significantly below its 5-year median P/E of 96.4x, suggesting the stock is trading at a lower valuation than its historical standard.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
