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 7.11 is considered Fairly compared with the five-year average of 132.83. The fair price of Q2 Holdings Inc (QTWO) is between 22.50 to 76.03 according to relative valuation methord.
Relative Value
Fair Zone
22.50-76.03
Current Price：72.65
Fair
40.60
PE
1Y
3Y
5Y
Trailing
Forward
31.72
EV/EBITDA
Q2 Holdings Inc. (QTWO) has a current EV/EBITDA of 31.72. The 5-year average EV/EBITDA is 68.45. The thresholds are as follows: Strongly Undervalued below -47.65, Undervalued between -47.65 and 10.40, Fairly Valued between 126.51 and 10.40, Overvalued between 126.51 and 184.56, and Strongly Overvalued above 184.56. The current Forward EV/EBITDA of 31.72 falls within the Historic Trend Line -Fairly Valued range.
39.83
EV/EBIT
Q2 Holdings Inc. (QTWO) has a current EV/EBIT of 39.83. The 5-year average EV/EBIT is 115.98. The thresholds are as follows: Strongly Undervalued below -103.20, Undervalued between -103.20 and 6.39, Fairly Valued between 225.57 and 6.39, Overvalued between 225.57 and 335.16, and Strongly Overvalued above 335.16. The current Forward EV/EBIT of 39.83 falls within the Historic Trend Line -Fairly Valued range.
7.11
PS
Q2 Holdings Inc. (QTWO) has a current PS of 7.11. The 5-year average PS is 6.03. The thresholds are as follows: Strongly Undervalued below -0.52, Undervalued between -0.52 and 2.75, Fairly Valued between 9.30 and 2.75, Overvalued between 9.30 and 12.57, and Strongly Overvalued above 12.57. The current Forward PS of 7.11 falls within the Historic Trend Line -Fairly Valued range.
35.61
P/OCF
Q2 Holdings Inc. (QTWO) has a current P/OCF of 35.61. The 5-year average P/OCF is 91.25. The thresholds are as follows: Strongly Undervalued below -144.63, Undervalued between -144.63 and -26.69, Fairly Valued between 209.19 and -26.69, Overvalued between 209.19 and 327.12, and Strongly Overvalued above 327.12. The current Forward P/OCF of 35.61 falls within the Historic Trend Line -Fairly Valued range.
43.99
P/FCF
Q2 Holdings Inc. (QTWO) has a current P/FCF of 43.99. The 5-year average P/FCF is 299.07. The thresholds are as follows: Strongly Undervalued below -1753.75, Undervalued between -1753.75 and -727.34, Fairly Valued between 1325.48 and -727.34, Overvalued between 1325.48 and 2351.89, and Strongly Overvalued above 2351.89. The current Forward P/FCF of 43.99 falls within the Historic Trend Line -Fairly Valued range.
Q2 Holdings Inc (QTWO) has a current Price-to-Book (P/B) ratio of 10.38. Compared to its 3-year average P/B ratio of 6.90 , the current P/B ratio is approximately 50.45% higher. Relative to its 5-year average P/B ratio of 7.15, the current P/B ratio is about 45.08% higher. Q2 Holdings Inc (QTWO) has a Forward Free Cash Flow (FCF) yield of approximately 2.81%. Compared to its 3-year average FCF yield of 2.43%, the current FCF yield is approximately 15.83% lower. Relative to its 5-year average FCF yield of 1.39% , the current FCF yield is about 102.66% lower.
10.38
P/B
Median3y
6.90
Median5y
7.15
2.81
FCF Yield
Median3y
2.43
Median5y
1.39
Competitors Valuation Multiple
The average P/S ratio for QTWO's competitors is , providing a benchmark for relative valuation. Q2 Holdings Inc Corp (QTWO) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 14.64%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of QTWO decreased by 27.82% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -144.32 to -270.69.
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.
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FAQ
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