Is Tyler Technologies, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Tyler Technologies, Inc. has moved from attractive to expensive, indicating a shift towards overvaluation. The company is currently considered overvalued based on its high P/E ratio of 100, an EV to EBITDA ratio of 61.48, and a Price to Book Value of 8.25. In comparison, peers such as MSCI, Inc. have a P/E ratio of 62.31 and Verisk Analytics, Inc. shows a significantly higher P/E at 156.72, highlighting the relative expense of Tyler Technologies within its industry.
Recent performance metrics also reflect the company's challenges, with a year-to-date return of -12.32% compared to the S&P 500's positive return of 13.30%. This underperformance, alongside the elevated valuation ratios, reinforces the conclusion that Tyler Technologies, Inc. is overvalued in the current market environment.