QTWO Valuation

Q2 Holdings Inc

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71.990

+1.82(2.594%)1D

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 Undervalued zone, suggesting that its current forward PS ratio of 7.11 is considered Undervalued compared with the five-year average of 138.84. The fair price of Q2 Holdings Inc (QTWO) is between 159.52 to 214.03 according to relative valuation methord. Compared to the current price of 71.99 USD , Q2 Holdings Inc is Undervalued By 54.87%.

Relative Value

Fair Zone

159.52-214.03

Current Price：71.99

54.87%

Undervalued

40.60

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 70.71. The thresholds are as follows: Strongly Undervalued below -49.59, Undervalued between -49.59 and 10.56, Fairly Valued between 130.86 and 10.56, Overvalued between 130.86 and 191.01, and Strongly Overvalued above 191.01. 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 121.01. The thresholds are as follows: Strongly Undervalued below -109.81, Undervalued between -109.81 and 5.60, Fairly Valued between 236.43 and 5.60, Overvalued between 236.43 and 351.84, and Strongly Overvalued above 351.84. 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 6.14. The thresholds are as follows: Strongly Undervalued below -0.59, Undervalued between -0.59 and 2.78, Fairly Valued between 9.50 and 2.78, Overvalued between 9.50 and 12.87, and Strongly Overvalued above 12.87. 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 92.53. The thresholds are as follows: Strongly Undervalued below -142.22, Undervalued between -142.22 and -24.85, Fairly Valued between 209.90 and -24.85, Overvalued between 209.90 and 327.27, and Strongly Overvalued above 327.27. 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 300.08. The thresholds are as follows: Strongly Undervalued below -1735.75, Undervalued between -1735.75 and -717.83, Fairly Valued between 1317.99 and -717.83, Overvalued between 1317.99 and 2335.90, and Strongly Overvalued above 2335.90. 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 6.80 , the current P/B ratio is approximately 52.64% higher. Relative to its 5-year average P/B ratio of 7.19, the current P/B ratio is about 44.34% 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 2.39%, the current FCF yield is approximately 17.46% lower. Relative to its 5-year average FCF yield of 1.35% , the current FCF yield is about 107.68% lower.

10.38

P/B

Median3y

6.80

Median5y

7.19

2.81

FCF Yield

Median3y

2.39

Median5y

1.35

Competitors Valuation Multiple

The average P/S ratio for QTWO's competitors is 58.83, 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.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Science Applications International Corp

Ingram Micro Holding Corp

Insight Enterprises Inc

91.54

-4.03%

2.83B

Performance Decomposition

Market capitalization of QTWO decreased by 31.27% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -147.03 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

84.11%

-147.03 → -270.69

P/E Change

-31.27%