Q2 Holdings, Inc.

NYSE:QTWO Stock Report

Market Cap: US$6.3b

Q2 Holdings Valuation

Is QTWO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of QTWO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: QTWO ($104.69) is trading above our estimate of fair value ($73.19)

Significantly Below Fair Value: QTWO is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for QTWO?

Key metric: As QTWO is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for QTWO. This is calculated by dividing QTWO's market cap by their current revenue.
What is QTWO's PS Ratio?
PS Ratio9.4x
SalesUS$675.54m
Market CapUS$6.32b

Price to Sales Ratio vs Peers

How does QTWO's PS Ratio compare to its peers?

The above table shows the PS ratio for QTWO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average8x
WK Workiva
9x14.9%US$6.4b
CCCS CCC Intelligent Solutions Holdings
8.1x8.7%US$7.5b
ACIW ACI Worldwide
3.4x5.9%US$5.6b
SPSC SPS Commerce
11.6x14.2%US$7.1b
QTWO Q2 Holdings
9.4x11.1%US$6.3b

Price-To-Sales vs Peers: QTWO is expensive based on its Price-To-Sales Ratio (9.4x) compared to the peer average (8x).

Price to Sales Ratio vs Industry

How does QTWO's PS Ratio compare vs other companies in the US Software Industry?

79 CompaniesPrice / SalesEstimated GrowthMarket Cap
VYX NCR Voyix
0.6x-22.3%US$2.03b
PGY Pagaya Technologies
0.7x15.5%US$659.22m
XPER Xperi
0.9x1.8%US$456.82m
EGHT 8x8
0.5x1.5%US$355.40m
QTWO 9.4xIndustry Avg. 5.5xNo. of Companies79PS048121620+
79 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: QTWO is expensive based on its Price-To-Sales Ratio (9.4x) compared to the US Software industry average (5.5x).

Price to Sales Ratio vs Fair Ratio

What is QTWO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

QTWO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio9.4x
Fair PS Ratio3.8x

Price-To-Sales vs Fair Ratio: QTWO is expensive based on its Price-To-Sales Ratio (9.4x) compared to the estimated Fair Price-To-Sales Ratio (3.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst QTWO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$104.69
US$102.00
-2.6%
11.2%US$126.00US$86.00n/a14
Dec ’25US$104.74
US$100.15
-4.4%
9.6%US$120.00US$86.00n/a13
Nov ’25US$85.09
US$81.31
-4.4%
10.4%US$95.00US$65.00n/a13
Oct ’25US$77.83
US$79.00
+1.5%
8.8%US$91.00US$65.00n/a14
Sep ’25US$74.21
US$78.08
+5.2%
8.1%US$90.00US$65.00n/a13
Aug ’25US$70.05
US$76.54
+9.3%
10.0%US$90.00US$61.00n/a13
Jul ’25US$60.19
US$62.46
+3.8%
8.1%US$72.00US$50.00n/a13
Jun ’25US$60.82
US$62.23
+2.3%
7.9%US$72.00US$50.00n/a13
May ’25US$51.73
US$54.01
+4.4%
11.8%US$62.00US$40.00n/a15
Apr ’25US$50.58
US$51.07
+1.0%
10.0%US$60.00US$40.00n/a15
Mar ’25US$46.27
US$50.14
+8.4%
9.1%US$58.00US$40.00n/a14
Feb ’25US$42.07
US$43.20
+2.7%
12.1%US$51.00US$34.00n/a15
Jan ’25US$43.41
US$41.71
-3.9%
9.9%US$50.00US$34.00n/a14
Dec ’24US$37.52
US$38.71
+3.2%
8.3%US$42.00US$30.00US$104.7414
Nov ’24US$29.80
US$37.93
+27.3%
10.2%US$42.00US$28.00US$85.0914
Oct ’24US$32.27
US$38.14
+18.2%
10.1%US$42.00US$28.00US$77.8314
Sep ’24US$35.19
US$38.14
+8.4%
10.1%US$42.00US$28.00US$74.2114
Aug ’24US$35.81
US$33.07
-7.6%
15.7%US$40.00US$24.00US$70.0514
Jul ’24US$30.90
US$30.23
-2.2%
11.6%US$36.00US$24.00US$60.1913
Jun ’24US$28.40
US$30.23
+6.4%
11.6%US$36.00US$24.00US$60.8213
May ’24US$24.19
US$32.42
+34.0%
19.0%US$42.00US$20.00US$51.7312
Apr ’24US$24.62
US$33.08
+34.4%
19.1%US$42.00US$20.00US$50.5812
Mar ’24US$31.90
US$36.67
+14.9%
23.0%US$60.00US$26.00US$46.2712
Feb ’24US$33.76
US$36.33
+7.6%
25.5%US$60.00US$22.00US$42.0712
Jan ’24US$26.87
US$36.33
+35.2%
25.5%US$60.00US$22.00US$43.4112
Dec ’23US$27.87
US$36.50
+31.0%
25.2%US$60.00US$22.00US$37.5212

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 09:08
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Q2 Holdings, Inc. is covered by 30 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Peter HeckmannAvondale Partners
Joseph VruwinkBaird
Ishan MajumdarBaptista Research