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 7.11 is considered Fairly compared with the five-year average of 130.77. The fair price of Q2 Holdings Inc (QTWO) is between 26.04 to 81.04 according to relative valuation methord.

Relative Value

Fair Zone

26.04-81.04

Current Price：75.31

Fair

40.60

31.72

EV/EBITDA

Q2 Holdings Inc. (QTWO) has a current EV/EBITDA of 31.72. The 5-year average EV/EBITDA is 67.68. The thresholds are as follows: Strongly Undervalued below -46.78, Undervalued between -46.78 and 10.45, Fairly Valued between 124.91 and 10.45, Overvalued between 124.91 and 182.14, and Strongly Overvalued above 182.14. 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 114.26. The thresholds are as follows: Strongly Undervalued below -100.38, Undervalued between -100.38 and 6.94, Fairly Valued between 221.58 and 6.94, Overvalued between 221.58 and 328.90, and Strongly Overvalued above 328.90. The current Forward EV/EBIT of 39.83 falls within the Historic Trend Line -Fairly Valued range.

7.11

Q2 Holdings Inc. (QTWO) has a current PS of 7.11. The 5-year average PS is 5.99. The thresholds are as follows: Strongly Undervalued below -0.49, Undervalued between -0.49 and 2.75, Fairly Valued between 9.22 and 2.75, Overvalued between 9.22 and 12.46, and Strongly Overvalued above 12.46. 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 90.80. The thresholds are as follows: Strongly Undervalued below -145.38, Undervalued between -145.38 and -27.29, Fairly Valued between 208.89 and -27.29, Overvalued between 208.89 and 326.98, and Strongly Overvalued above 326.98. 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 298.67. The thresholds are as follows: Strongly Undervalued below -1759.60, Undervalued between -1759.60 and -730.47, Fairly Valued between 1327.80 and -730.47, Overvalued between 1327.80 and 2356.93, and Strongly Overvalued above 2356.93. 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 6.94 , the current P/B ratio is approximately 49.51% higher. Relative to its 5-year average P/B ratio of 7.14, the current P/B ratio is about 45.37% 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 2.44%, the current FCF yield is approximately 15.13% lower. Relative to its 5-year average FCF yield of 1.40% , the current FCF yield is about 101.12% lower.

10.38

P/B

Median3y

6.94

Median5y

7.14

2.81

FCF Yield

Median3y

2.44

Median5y

1.40

Competitors Valuation Multiple

The average P/S ratio for QTWO's competitors is 1.13, providing a benchmark for relative valuation. Q2 Holdings Inc Corp (QTWO) exhibits a P/S ratio of , which is -100% 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 25.18% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -142.32 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.

14.64%

165.51M → 189.74M

Revenue Growth

-130.02%

-8.36 → 2.51

Margin Expansion

90.20%

-142.32 → -270.69

P/E Change

-25.18%

100.65 → 75.31

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 26.04 to 81.04 according to relative valuation methord.

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

The average P/S ratio for QTWO's competitors is 1.13, providing a benchmark for relative valuation. Q2 Holdings Inc Corp (QTWO) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 14.64%, this premium appears unsustainable.

What is the current P/B ratio for Q2 Holdings Inc (QTWO) as of Dec 15 2025?

As of Dec 15 2025, Q2 Holdings Inc (QTWO) has a P/B ratio of 10.38. This indicates that the market values QTWO at 10.38 times its book value.

What is the current FCF Yield for Q2 Holdings Inc (QTWO) as of Dec 15 2025?

As of Dec 15 2025, Q2 Holdings Inc (QTWO) has a FCF Yield of 2.81%. This means that for every dollar of Q2 Holdings Inc’s market capitalization, the company generates 2.81 cents in free cash flow.

What is the current Forward P/E ratio for Q2 Holdings Inc (QTWO) as of Dec 15 2025?

As of Dec 15 2025, Q2 Holdings Inc (QTWO) has a Forward P/E ratio of 40.60. This means the market is willing to pay $40.60 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 Dec 15 2025?

As of Dec 15 2025, Q2 Holdings Inc (QTWO) has a Forward P/S ratio of 7.11. This means the market is valuing QTWO at $7.11 for every dollar of expected revenue over the next 12 months.

QTWO Valuation