Tyler Technologies Inc
TYLAbove valueExpectations · demandingHeld by 1 superinvestor.
SEC 10-K · fundamentals
Business quality
as of 2025-12-31Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.
- Revenue growth
- +9.1%
- Net margin
- 13.5%
- ROE
- 8.5%
- FCF margin
- 27.3%
Valuation · value band
Above fair value
Zero-growth floor
$69
Central IV
$95
Optimistic top
$115
Tyler Technologies Inc (TYL): A conservative value band $69–$115 / sh (zero-growth floor to growth-capped optimistic top); central read about $95. Today’s price sits above that band (price $379 as of 2026-09-03).
The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.
Revenue growth 3% (lower of historical trend and fundamental cap, capped by moat) · moat 10 yr · discount 10.6% · Zero-growth downside $69
Price as of 2026-09-03 · yahoo · DGS10 4.8% @ 2026-09-02.
Method & numbers
A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.
Owner-earnings DCF $67.57 – $114.97 · Greenwald zero-growth $95.19 · zero-growth base $95.19 · reproduction $30.34
Moat Franchise (moat) · terminal value 47% of present value · owner-earnings yield 2% vs 10Y 4.8%.
Graham earnings-power value (normalized NOPAT)$79.17 – $95.19 / sh
Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.
Years: TTM 2026-06-30, 2024, 2023, 2022, 2021
v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Maintenance-capex methods diverge by 160% (> 50%); estimate is degraded. Share-based compensation is left as a real expense (not added back).
Buffett owner-earnings value$68.51 – $83.74 / sh
Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 9–11% rate band (read as a cost-of-equity proxy). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).
Years: TTM 2026-06-30, 2024, 2023, 2022, 2021
v1 simplifications: Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 160% (> 50%); estimate is degraded. One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% band as a cost-of-equity proxy; no leverage premium applied (net cash or debt within the no-charge range).
Asset floor: Reproduction value = tangible net assets + acquired-intangible reset proxy, ÷ diluted shares; tangible net assets alone are negative for this asset-light franchise (no R&D history to capitalize).
Moat reading: Franchise test compares earnings power (EPV) against reproduction value (tangible net assets + capitalized R&D). EPV well above reproduction value signals a moat; near it, a commodity; below it, value destruction. A directional reading, not a verdict.
Assumes a narrow moat · competitive-advantage period ≈ 10 years.
Growth value not assessable — No positive growth reinvestment in the matured window, so ROIIC cannot be computed.
Window TTM 2026-06-30, FY 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 13% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.
Owner-earnings DCF: growth g₁ 3% · OE FY TTM 2026-06-30, 2024, 2023, 2022, 2021 · Discount band: 9.29%–12.00% (DGS10 +4.5% to a 12% strict end, as of 2026-09-02). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp.
Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.
What the price is betting
Today's price pencils in about 29.2% a year in owner-earnings for the next few years. Revenue actually grew 14.1% a year.
The market wants it well ahead of its own track record.
Roughly, the price needs its historical revenue growth to run about 22 more years to hold up.
SEC 13F · holders
Superinvestors Holding This Security
1 holder · $14,648 combined · this quarter +0 opened / -0 exited
- Value$14,648Weight (prev→now)0.0% → 0.0% ▼
SEC 13F · notes
Written summary
Written summary
Tyler Technologies Inc (TYL) is held by 1 of the superinvestors tracked on Compounder, with a combined $14,648 in reported 13F value. The largest position belongs to Brian Bares, where it makes up 0.0% of the portfolio.
Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2025-09-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.
SEC 13F · co-ownership
Also held by these investors
Investors holding Tyler Technologies Inc (TYL) also commonly hold →
- Pegasystems IncPEGA1 holder
- Block IncXYZ1 holder
- Workday Inc-Class AWDAY1 holder
- Interactive Brokers Gro-Cl AIBKR1 holder
- Costar Group IncCSGP1 holder
- Etsy IncETSY1 holder
TYL's price is not below its conservative value band. See current strike-zone stocks
Sources· SEC EDGAR 13F as of 2025-09-30 · filed 2025-11-14
Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.
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