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Tyler TechnologiesMEX:TYL 26 Forward Rate of Return (Yacktman) % is 15.72% as of Jun. 2026, which is 2% above its 10-year median of 15.39. GuruFocus rates MEX:TYL with a GF Score™ of 26/100 and a GF Value™ of MXN10,121.96 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,374 Software companies, Tyler Technologies ranks better than 56.48% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Tyler Technologies's forward rate of return for was 15.72%.
The historical rank and industry rank for Tyler Technologies's Forward Rate of Return (Yacktman) % or its related term are showing as below:
MEX:TYL'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 8.09 Med: 15.39 Max: 22.13
Current: 15.56
During the past 13 years, Tyler Technologies's highest Forward Rate of Return was 22.13. The lowest was 8.09. And the median was 15.39.
MEX:TYL's Forward Rate of Return (Yacktman) % is ranked better than 56.48% of 1374
companies
in the Software industry
Industry Median: 13.27
vs MEX:TYL: 15.56
Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Tyler Technologies (MEX:TYL) Forward Rate of Return (Yacktman) % Explanation
Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.
Be Aware
In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.
Tyler Technologies Forward Rate of Return (Yacktman) % Related Terms
Tyler Technologies Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Tyler Technologies's Forward Rate of Return (Yacktman) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Tyler Technologies Forward Rate of Return (Yacktman) % Chart
MEX:TYL vs DT, U, GWRE: Forward Rate of Return (Yacktman) % Comparison
For the Software - Application subindustry, Tyler Technologies's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tyler Technologies Forward Rate of Return (Yacktman) % vs Software Industry
For the Software industry and Technology sector, Tyler Technologies's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Tyler Technologies's Forward Rate of Return (Yacktman) % falls into.
Tyler Technologies Forward Rate of Return (Yacktman) % Calculation
Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):
If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.
The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Forward Rate of Return (Yacktman) % of 15.72% mean?
Tyler Technologies (MEX:TYL) has a Forward Rate of Return (Yacktman) % of 15.72% as of Jun. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Tyler Technologies and its competitors. This is near median its historical median of 15.39. Over the past decade, Tyler Technologies' Forward Rate of Return (Yacktman) % has ranged from 8.09 to 22.13. According to the industry distribution chart, Tyler Technologies ranks #598 out of 1374 companies in the Software industry, placing it in the top 43.5%.
Is Tyler Technologies' Forward Rate of Return (Yacktman) % too high?
Tyler Technologies' current Forward Rate of Return (Yacktman) % of 15.72% is near median its 10-year median of 15.39. Over the past 10 years, this metric has ranged from a low of 8.09 to a high of 22.13. The Software industry median Forward Rate of Return (Yacktman) % is 13.27. Tyler Technologies' value of 15.72% is 18.5% above this industry median. Based on the distribution chart, Tyler Technologies ranks #598 out of 1374 companies in the Software industry, which is above the industry midpoint. Overall, Tyler Technologies has a GF Score™ of 26/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tyler Technologies' Forward Rate of Return (Yacktman) % compare to DT and U?
According to the Software industry distribution chart, Tyler Technologies ranks #598 out of 1374 companies for Forward Rate of Return (Yacktman) %. This puts Tyler Technologies in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 13.27. Tyler Technologies' value of 15.72% is 18.5% above this benchmark. Historically, Tyler Technologies' own Forward Rate of Return (Yacktman) % has ranged from 8.09 to 22.13 over the past decade. While the company's 10-year median is 15.39 vs. the industry median of 13.27, Tyler Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward Rate of Return (Yacktman) % for a Software company?
The median Forward Rate of Return (Yacktman) % among Software companies is 13.27, based on 1,374 companies in the industry. Companies in the top quartile (top 25%) have a Forward Rate of Return (Yacktman) % significantly above this median, while those in the bottom quartile fall well below. However, Forward Rate of Return (Yacktman) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tyler Technologies's current Forward Rate of Return (Yacktman) % of 15.72% is 18.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward Rate of Return (Yacktman) % mean?
A high Forward Rate of Return (Yacktman) % can signal that a stock is expensive relative to its fundamentals. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Tyler Technologies and its competitors. For the Software industry, the median Forward Rate of Return (Yacktman) % is 13.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tyler Technologies's current Forward Rate of Return (Yacktman) % is 15.72%, which is near median its own 10-year median of 15.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tyler Technologies stock overvalued right now?
Based on GuruFocus' analysis, Tyler Technologies (MEX:TYL) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN10,121.96, compared to a current price of MXN5,516.00 — trading 45.5% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 15.72%, which is near median its 10-year median of 15.39 and 18.5% above the Software industry median of 13.27. Tyler Technologies' overall GF Score™ is 26/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward Rate of Return (Yacktman) % calculated?
Forward Rate of Return (Yacktman) % is calculated from a company's financial statements. For Tyler Technologies (MEX:TYL), the current Forward Rate of Return (Yacktman) % is 15.72% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tyler Technologies (MEX:TYL) Overvalued in 2026?
Based on GuruFocus' analysis, Tyler Technologies stock appears to be undervalued.
The current stock price of MXN5,516.00 is trading 45.5% below its estimated GF Value™ of MXN10,121.96.
GuruFocus considers Tyler Technologies to be Significantly Undervalued.
Key valuation signals for MEX:TYL:
Forward Rate of Return (Yacktman) %: 15.72% (near median its 10-year median of 15.39)
GF Value™: MXN10,121.96 vs. price of MXN5,516.00 (45.5% below fair value)
Industry Position: 18.5% above the Software median (#598 of 1374)
No single metric tells the full story. See the MEX:TYL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tyler Technologies provides a full suite of software solutions and services that address the needs of cities, counties, schools, courts and other local government entities. The company's three core products are Munis, which is the core ERP system, Odyssey, which is the court management system, or CMS, and payments. The company also provides a variety of add-on modules and offers outsourced property tax assessment services.
26GF Score
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Forward Rate of Return (Yacktman) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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