Using the PEG framework with analyst consensus forward EPS growth of 25.0%, Tyler Technologies, Inc. has a fair value of $313.39 based on NTM EPS (FY2026) of $12.54. The current PEG ratio is 0.87.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 31.3% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $12.54 |
| Fair Value | $313.39 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $7.20 | — | — |
| FY2026E | $12.54 | +74.1% | 17 |
| FY2027E | $14.18 | +13.1% | 16 |
| FY2028E | $16.29 | +14.8% | 7 |
3Y Forward EPS CAGR: 31.3%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $161.5M | $3.82 | — |
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.
| FY2022 | $164.2M | $3.87 | +1.3% |
| FY2023 | $165.9M | $3.88 | +0.3% |
| FY2024 | $263.0M | $6.05 | +55.9% |
| FY2025 | $315.6M | $7.20 | +19.0% |
4Y Historical EPS CAGR: 17.2%