A Closer Look at Tyler Technologies (TYL) Valuation Following Recent Share Price Trends

Tyler Technologies (TYL) stock has experienced an 18% decline this year, contributing to a 25.4% drop in one-year shareholder return despite a 37.2% gain over three years. While analysts set a fair value of $649.83, suggesting the stock is 27.7% undervalued, its current P/E ratio of 64.1x is significantly higher than the industry average, indicating potential overvaluation by some metrics. Investors are left to weigh the discounted price against slowing growth and high multiples, with considerations for ongoing government spending and contract deal risks.