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DCF Valuation
Base-case fair value
$464.32
Intrinsic $619.09 · 25% MOS
Current price: $312.07
Base-case summary
Our base-case DCF for Tyler Technologies Inc (TYL) projects 10 years of free cash flow growth at 15.3% for years 1–5 and 7.7% for years 6–10, anchored to 15.3% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $688M in trailing free cash flow, this produces an intrinsic value of $619.09 per share. A 25% safety margin gives a fair value of $464.32, suggesting the stock is currently 49% undervalued against the $312.07 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$688M
Cash & equivalents
$346M
Total debt
$48M
Shares outstanding
43M