Is Q2 Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Q2 Holdings, Inc. has moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears to be undervalued, particularly given its current Price to Book Value of 10.43 and an EV to Sales ratio of 7.91, despite the negative P/E and ROE figures reflecting its loss-making status. Comparatively, Box, Inc. has a P/E of 21.43 and an EV to EBITDA of 50.43, while Pegasystems, Inc. shows a fair valuation with a P/E of 48.13 and an EV to EBITDA of 31.74.
In terms of recent performance, Q2 Holdings has underperformed against the S&P 500, with a year-to-date return of -40.53% compared to the S&P's 13.30%, which reinforces the notion of undervaluation amidst its attractive valuation grade.