QTWO PE Ratio & Valuation,Is QTWO Overvalued

QTWO Relative Valuation

QTWO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, QTWO is overvalued; if below, it's undervalued.

Historical Valuation

Q2 Holdings Inc (QTWO) is now in the Fair zone, suggesting that its current forward PS ratio of 7.16 is considered Fairly compared with the five-year average of 124.90. The fair price of Q2 Holdings Inc (QTWO) is between 27.37 to 76.90 according to relative valuation methord.

Relative Value

Fair Zone

27.37-76.90

Current Price：71.50

Fair

43.61

35.46

EV/EBITDA

Q2 Holdings Inc. (QTWO) has a current EV/EBITDA of 35.46. The 5-year average EV/EBITDA is 65.46. The thresholds are as follows: Strongly Undervalued below -43.67, Undervalued between -43.67 and 10.89, Fairly Valued between 120.02 and 10.89, Overvalued between 120.02 and 174.58, and Strongly Overvalued above 174.58. The current Forward EV/EBITDA of 35.46 falls within the Historic Trend Line -Fairly Valued range.

43.84

EV/EBIT

Q2 Holdings Inc. (QTWO) has a current EV/EBIT of 43.84. The 5-year average EV/EBIT is 109.66. The thresholds are as follows: Strongly Undervalued below -91.95, Undervalued between -91.95 and 8.85, Fairly Valued between 210.46 and 8.85, Overvalued between 210.46 and 311.27, and Strongly Overvalued above 311.27. The current Forward EV/EBIT of 43.84 falls within the Historic Trend Line -Fairly Valued range.

7.16

Q2 Holdings Inc. (QTWO) has a current PS of 7.16. The 5-year average PS is 5.87. The thresholds are as follows: Strongly Undervalued below -0.34, Undervalued between -0.34 and 2.77, Fairly Valued between 8.97 and 2.77, Overvalued between 8.97 and 12.07, and Strongly Overvalued above 12.07. The current Forward PS of 7.16 falls within the Historic Trend Line -Fairly Valued range.

37.54

P/OCF

Q2 Holdings Inc. (QTWO) has a current P/OCF of 37.54. The 5-year average P/OCF is 87.90. The thresholds are as follows: Strongly Undervalued below -142.43, Undervalued between -142.43 and -27.26, Fairly Valued between 203.07 and -27.26, Overvalued between 203.07 and 318.23, and Strongly Overvalued above 318.23. The current Forward P/OCF of 37.54 falls within the Historic Trend Line -Fairly Valued range.

49.28

P/FCF

Q2 Holdings Inc. (QTWO) has a current P/FCF of 49.28. The 5-year average P/FCF is 301.59. The thresholds are as follows: Strongly Undervalued below -1766.68, Undervalued between -1766.68 and -732.54, Fairly Valued between 1335.72 and -732.54, Overvalued between 1335.72 and 2369.86, and Strongly Overvalued above 2369.86. The current Forward P/FCF of 49.28 falls within the Historic Trend Line -Fairly Valued range.

Q2 Holdings Inc (QTWO) has a current Price-to-Book (P/B) ratio of 0.00. Compared to its 3-year average P/B ratio of 7.01 , the current P/B ratio is approximately -100.00% higher. Relative to its 5-year average P/B ratio of 7.08, the current P/B ratio is about -100.00% higher. Q2 Holdings Inc (QTWO) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.46%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 1.42% , the current FCF yield is about -100.00% lower.

0.00

P/B

Median3y

7.01

Median5y

7.08

0.00

FCF Yield

Median3y

2.46

Median5y

1.42

Competitors Valuation Multiple

The average P/S ratio for QTWO's competitors is 2.30, providing a benchmark for relative valuation. Q2 Holdings Inc Corp (QTWO) exhibits a P/S ratio of 7.16, which is 210.92% above the industry average. Given its robust revenue growth of 14.64%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of QTWO decreased by 24.87% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from 0.00 to 0.00.

The secondary factor is the Revenue Growth, contributed 14.64%to the performance.

Overall, the performance of QTWO in the past 1 year is driven by P/E Change. Which is more unsustainable.

14.64%

165.51M → 189.74M

Revenue Growth

-130.02%

-8.36 → 2.51

Margin Expansion

90.51%

0.00 → 0.00

P/E Change

-24.87%

95.17 → 71.50

Mkt Cap Growth

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Frequently Asked Questions

Is Q2 Holdings Inc (QTWO) currently overvalued or undervalued?

What is Q2 Holdings Inc (QTWO) fair value?

QTWO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Q2 Holdings Inc (QTWO) is between 27.37 to 76.90 according to relative valuation methord.

How does QTWO's valuation metrics compare to the industry average?

What is the current P/B ratio for Q2 Holdings Inc (QTWO) as of Jan 08 2026?

As of Jan 08 2026, Q2 Holdings Inc (QTWO) has a P/B ratio of 0.00. This indicates that the market values QTWO at 0.00 times its book value.

What is the current FCF Yield for Q2 Holdings Inc (QTWO) as of Jan 08 2026?

As of Jan 08 2026, Q2 Holdings Inc (QTWO) has a FCF Yield of 0.00%. This means that for every dollar of Q2 Holdings Inc’s market capitalization, the company generates 0.00 cents in free cash flow.

What is the current Forward P/E ratio for Q2 Holdings Inc (QTWO) as of Jan 08 2026?

As of Jan 08 2026, Q2 Holdings Inc (QTWO) has a Forward P/E ratio of 43.61. This means the market is willing to pay $43.61 for every dollar of Q2 Holdings Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Q2 Holdings Inc (QTWO) as of Jan 08 2026?

As of Jan 08 2026, Q2 Holdings Inc (QTWO) has a Forward P/S ratio of 7.16. This means the market is valuing QTWO at $7.16 for every dollar of expected revenue over the next 12 months.

QTWO Valuation