Discounted Cash Flow (DCF) Analysis Unlevered

Tyler Technologies, Inc. (TYL)

$394.08

-4.14 (-1.04%)

All numbers are in Millions, Currency in USD

Stock DCF: 263.46 | 394.08 | overvalue

Operating Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	1,086.43	1,116.66	1,592.29	1,850.20	2,229.95	2,687.65	3,239.28	3,904.13	4,705.45	5,671.23
Revenue (%)
EBITDA	236.51	256.70	317.90	375.04	473.83	571.08	688.29	829.56	999.83	1,205.04
EBITDA (%)
EBIT	159.84	175.04	182.28	215.97	298.30	359.53	433.32	522.26	629.45	758.64
EBIT (%)
Depreciation	76.67	81.66	135.62	159.07	175.52	211.55	254.97	307.30	370.38	446.40
Depreciation (%)

Balance Sheet Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Total Cash	272.08	675.81	361.47	210.89	159.66	681.71	821.63	990.27	1,193.52	1,438.49
Total Cash (%)
Account Receivables	380.57	403.92	539.20	577.26	508.68	855.08	1,030.58	1,242.10	1,497.04	1,804.31
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	14.98	14.01	119.99	104.81	88.27	106.39	128.23	154.54	186.26	224.49
Accounts Payable (%)
Capital Expenditure	-42.04	-28.47	-55.61	-22.53	-62.04	-74.78	-90.12	-108.62	-130.92	-157.79
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 394.08
Beta	0.838
Diluted Shares Outstanding	42.40
Cost of Debt
Tax Rate	12.45
After-tax Cost of Debt	4.38%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.674
Total Debt	682.89
Total Equity	16,708.60
Total Capital	17,391.49
Debt Weighting	3.93
Equity Weighting	96.07
Wacc

Build Up Free Cash

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	1,086.43	1,116.66	1,592.29	1,850.20	2,229.95	2,687.65	3,239.28	3,904.13	4,705.45	5,671.23
EBITDA	236.51	256.70	317.90	375.04	473.83	571.08	688.29	829.56	999.83	1,205.04
EBIT	159.84	175.04	182.28	215.97	298.30	359.53	433.32	522.26	629.45	758.64
Tax Rate	8.33%	-11.30%	-1.56%	12.45%	1.98%	1.98%	1.98%	1.98%	1.98%	1.98%
EBIAT	146.53	194.82	185.12	189.09	292.40	352.41	424.74	511.92	616.99	743.62
Depreciation	76.67	81.66	135.62	159.07	175.52	211.55	254.97	307.30	370.38	446.40
Accounts Receivable	-	-23.35	-135.28	-38.06	68.57	-346.39	-175.50	-211.52	-254.94	-307.26
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	-0.97	105.98	-15.17	-16.54	18.12	21.84	26.32	31.72	38.23
Capital Expenditure	-42.04	-28.47	-55.61	-22.53	-62.04	-74.78	-90.12	-108.62	-130.92	-157.79
UFCF	181.16	223.70	235.83	272.39	457.91	160.91	435.92	525.39	633.23	763.20
WACC
PV UFCF					457.91	149.63	376.94	422.45	473.46	530.62
SUM PV UFCF										1,953.09

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.54
Free cash flow (t + 1)	778.46
Terminal Value	14,051.65
Present Value of Terminal Value	9,769.61

Intrinsic Value

Enterprise Value	11,722.70
Net Debt	552.05
Equity Value	11,170.65
Shares Outstanding	42.40
Equity Value Per Share	263.46