Is Tyler Technologies, Inc. overvalued or undervalued?

As of 30 July 2025, the valuation grade for Tyler Technologies, Inc. moved from expensive to very expensive. This indicates that the company is overvalued based on its current financial metrics. The P/E ratio stands at 100, significantly higher than its peer MSCI, Inc. at 62.31 and Verisk Analytics, Inc. at 156.72. Additionally, the EV to EBITDA ratio is 89.51, which is also elevated compared to the industry average.
In comparison to its peers, Tyler Technologies shows a PEG ratio of 1.98, which is lower than MSCI's 4.89, suggesting that while it may have growth potential, it is priced at a premium. The company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -8.08% compared to the index's 12.22%, reinforcing the notion that the stock is overvalued.