In This Article:
Today we're going to take a look at the well-established Tyler Technologies, Inc. (NYSE:TYL). The company's stock saw significant share price movement during recent months on the NYSE, rising to highs of US$647 and falling to the lows of US$560. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Tyler Technologies' current trading price of US$606 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Tyler Technologies’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for Tyler Technologies
What's The Opportunity In Tyler Technologies?
According to our valuation model, Tyler Technologies seems to be fairly priced at around 12.50% above our intrinsic value, which means if you buy Tyler Technologies today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $539.03, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, Tyler Technologies’s low beta implies that the stock is less volatile than the wider market.
What does the future of Tyler Technologies look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 65% over the next couple of years, the future seems bright for Tyler Technologies. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? It seems like the market has already priced in TYL’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping an eye on TYL, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.