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TYLTyler Technologies, Inc.
$321.45$13.6B
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  4. Financial Ratios

Tyler Technologies, Inc. (TYL) Financial Ratios

Latest Ratios: P/E Ratio 44.6x · EV/EBITDA 26.1x · ROE 8.9%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

TYL Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$13.6B$19.9B$25.1B$17.9B$13.7B$22.7B$18.1B$12.0B$7.5B$6.9B$5.6B
Enterprise Value$13.2B$19.5B$25.0B$18.4B$14.5B$23.8B$17.5B$11.8B$7.3B$6.8B$5.5B
P/E Ratio →44.6563.0595.31107.7683.31140.8293.0782.2050.4940.9848.89
P/S Ratio5.818.5311.739.167.3914.2716.2311.087.978.277.36
P/B Ratio3.805.377.406.095.219.789.137.445.635.956.08
P/FCF21.2631.2041.5254.6141.2671.8855.5056.5733.4745.5036.09
P/OCF20.7430.4340.1547.0035.8461.1351.0547.2429.8035.5028.99

P/E links to full P/E history page with 30-year chart

TYL EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—8.3811.689.437.8614.9515.7110.887.838.047.32
EV / EBITDA26.1438.6755.2747.3037.4567.6968.9250.7334.3331.3030.49
EV / EBIT36.9554.6679.5283.0067.33130.59100.2473.9746.9741.3742.16
EV / FCF—30.6641.3456.2443.8975.3053.7255.5932.8644.2935.92

TYL Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin44.0%44.0%41.0%40.3%39.0%41.8%46.6%45.6%45.3%45.9%45.2%
Operating Margin15.3%15.3%14.0%11.2%11.7%12.9%15.5%14.4%16.3%19.4%17.4%
Net Profit Margin13.5%13.5%12.3%8.5%8.9%10.1%17.4%13.5%15.8%19.5%14.5%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE8.9%8.9%8.3%6.0%6.6%7.5%10.8%10.0%11.8%15.7%12.4%
ROA5.8%5.8%5.3%3.5%3.5%4.4%8.1%7.4%8.7%11.1%8.1%
ROIC8.1%8.1%6.7%4.7%4.7%6.4%9.2%9.0%10.5%13.1%11.1%
ROCE8.9%8.9%7.7%5.8%5.6%6.9%9.3%10.3%11.8%14.8%13.0%

TYL Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.180.180.190.240.400.600.010.01——0.01
Debt / EBITDA1.341.341.411.792.693.950.090.10——0.06
Net Debt / Equity—-0.09-0.030.180.330.46-0.29-0.13-0.10-0.16-0.03
Net Debt / EBITDA-0.67-0.67-0.241.362.253.07-2.28-0.90-0.63-0.86-0.14
Debt / FCF—-0.53-0.181.622.633.41-1.78-0.98-0.60-1.22-0.17
Interest Coverage71.6171.6152.969.397.617.82————65.72

Net cash position: cash ($1.0B) exceeds total debt ($676M)

TYL Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio1.051.051.350.860.951.161.971.341.221.300.78
Quick Ratio1.051.051.350.860.951.161.971.341.221.300.78
Cash Ratio0.630.630.720.180.240.441.200.530.420.600.16
Asset Turnover—0.410.410.420.390.340.430.500.520.530.56
Inventory Turnover———————————
Days Sales Outstanding—103.69102.37115.89113.88123.60132.03127.86118.49111.8198.11

TYL Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield———————————
Payout Ratio———————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield2.2%1.6%1.0%0.9%1.2%0.7%1.1%1.2%2.0%2.4%2.0%
FCF Yield4.7%3.2%2.4%1.8%2.4%1.4%1.8%1.8%3.0%2.2%2.8%
Buyback Yield0.0%0.0%0.0%0.0%0.0%0.1%0.1%0.1%2.0%0.1%2.0%
Total Shareholder Yield0.0%0.0%0.0%0.0%0.0%0.1%0.1%0.1%2.0%0.1%2.0%
Shares Outstanding—$44M$43M$43M$42M$42M$42M$40M$40M$39M$39M

Key Metrics

Growth RegimeStable
ProfitabilityModerate
Balance SheetHealthy
Cash FlowMixed
Top Statement Risk

Municipal budget cycle volatility

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Premium Valuation Reflects Defensive Moat

Based on current market data, TYL trades at a forward P/E of 22.88, which appears to command a premium relative to broader software peers, reflecting investor confidence in the company's role as a critical, non-cyclical infrastructure provider for U.S. local government entities and public sector operations.

The current valuation multiple suggests that the market is pricing in the durability of TYL's recurring revenue streams rather than immediate hyper-growth. Investors should monitor whether the forward P/E compression relative to the TTM P/E of 40.89 is driven by anticipated earnings expansion or a potential re-rating of the sector's growth expectations.

Capital Efficiency Constrained by Acquisitions

As reported in recent financial statements, TYL's ROIC has remained modest at 2.3% in 2026Q1, indicating that the company's heavy reliance on historical acquisitions and the associated goodwill burden continues to weigh on the efficiency of capital deployed within its specialized municipal software ecosystem.

The low ROIC relative to pure-play SaaS peers suggests that the company's primary value creation is currently tied to market consolidation rather than high-margin organic compounding. Analysts should investigate whether the ongoing cloud transition will eventually allow for a higher return on invested capital as the company moves away from capital-intensive, bespoke implementation models.

Working Capital Cycles Impact Liquidity

According to quarterly filings, TYL's DSO has fluctuated significantly, reaching 92 days in 2026Q1, which highlights the inherent friction in collecting payments from fragmented municipal clients and the resulting impact on the company's cash conversion cycle compared to more streamlined, commercial-focused enterprise software providers.

The variability in DSO suggests that TYL's cash flow is highly dependent on the administrative timelines of government procurement departments. This operational reality necessitates a cautious approach to liquidity management, as the company must maintain sufficient working capital to bridge the gap between project milestones and final cash realization.

Misapplication of Standard SaaS Metrics

Investors frequently misapply standard SaaS growth metrics to TYL, failing to account for the fact that the company's transition to cloud-based subscriptions creates a temporary revenue headwind that obscures the underlying strength of its long-term, sticky municipal contracts and expanding digital payment transaction volumes.

Using simple revenue growth rates to evaluate TYL ignores the structural shift from upfront license fees to ratable subscription models, which fundamentally changes the timing of revenue recognition. A more accurate assessment would focus on the growth of deferred revenue and the expansion of the NIC transactional payment layer, which better reflects the company's true economic trajectory.

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TYL — Frequently Asked Questions

Quick answers to the most common questions about buying TYL stock.

What is Tyler Technologies, Inc.'s P/E ratio?

Tyler Technologies, Inc.'s current P/E ratio is 44.6x. The historical average is 60.0x. This places it at the 42th percentile of its historical range.

What is Tyler Technologies, Inc.'s EV/EBITDA?

Tyler Technologies, Inc.'s current EV/EBITDA is 26.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 29.7x.

What is Tyler Technologies, Inc.'s ROE?

Tyler Technologies, Inc.'s return on equity (ROE) is 8.9%. The historical average is 6.2%.

Is TYL stock overvalued?

Based on historical data, Tyler Technologies, Inc. is trading at a P/E of 44.6x. This is at the 42th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What are Tyler Technologies, Inc.'s profit margins?

Tyler Technologies, Inc. has 44.0% gross margin and 15.3% operating margin. Operating margin between 10-20% is typical for established companies.

How much debt does Tyler Technologies, Inc. have?

Tyler Technologies, Inc.'s Debt/EBITDA ratio is 1.3x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.