Is Q2 Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Q2 Holdings, Inc. moved from expensive to attractive, indicating a shift towards a more favorable assessment. Based on the available metrics, the company appears to be undervalued. Key ratios include a Price to Book Value of 10.43, an EV to Sales ratio of 7.91, and an EV to EBITDA of 89.20, which suggest that the company is trading at a discount relative to its potential value.
In comparison to peers, Q2 Holdings has a significantly higher P/E ratio of 460.47 compared to Pegasystems, Inc. at 48.13, which is considered fair, and Box, Inc. at 21.43, which is also attractive. Despite the attractive valuation grade, Q2 Holdings has underperformed in recent returns, with a year-to-date decline of 40.53% compared to a 13.30% gain in the S&P 500, highlighting the disconnect between its valuation and market performance.