Is Q2 Holdings, Inc. overvalued or undervalued?

As of 30 July 2025, the valuation grade for Q2 Holdings, Inc. has moved from risky to attractive. The company appears to be undervalued, especially considering its current Price to Book Value of 10.43 and an EV to Sales ratio of 7.91, which are relatively high compared to its peers. Additionally, the EV to EBITDA ratio stands at 89.20, indicating potential overvaluation in earnings before interest, taxes, depreciation, and amortization.
In comparison to peers, Q2 Holdings, Inc. has a significantly higher P/E ratio of 460.47, while Pegasystems, Inc. has a fair P/E of 48.13 and Box, Inc. shows an attractive P/E of 21.43. This suggests that while Q2 Holdings is currently valued attractively, its earnings performance is not yet reflected in traditional metrics. Over the past year, Q2 Holdings has returned 10.74%, which is lower than the S&P 500's return of 17.14%, indicating that while the stock has potential, it has underperformed against the broader market.