QTWOQ2 Holdings, Inc.
Is the price fair?
Neither cheap nor expensive: modest expectations priced in, but rich vs its sector.
Priced for a decline (~−0% a year). The price demands less than its three-year revenue growth of 12% a year, expectations look modest.
Sector median 30.5× across 203 covered peers. EV/EBIT counts debt as part of the price, so a cash-rich and a borrowed company can be compared on the same footing.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The growth-implied estimate assumes a fixed discount rate; capital-heavy sectors look structurally rich on it.
What QTWO's price assumes
Q2 Holdings, Inc. trades at 41.8× earnings against 33.9× for the median Software - Application name, more expensive than its own group.
Trailing P/E · Software - Application median 33.9 · 1.23× the median: the market pays up for this one
- Price / sales
- 3.47
Price / sales · today's price, fiscal year to Dec 31, 2025
- Free cash flow yield
- 7.7%
Free cash flow yield · Software - Application median 6.9%
- Growth the price implies
- −0.16%
Growth the price implies · The price pays for −0.16% free cash flow growth a year for a decade; the business has delivered +54% a year over the last three.
Details›
- Price / booktoday's price, fiscal year to Dec 31, 2025
- 4.17
- EV / EBITtoday's price, fiscal year to Dec 31, 2025
- 58.3
- EV / salestoday's price, fiscal year to Dec 31, 2025
- 2.92
- Technology median P/E459 names
- 37.7
- Software - Application median P/E126 names
- 33.9
- Free cash flow, trailing twelve months
- $213M
- Market capitalisation
- $2.76B
- 3-year revenue growth
- +12%
- 3-year free cash flow growth
- +54%
Multiples from SEC filings and end-of-day closes; implied growth from a reverse discounted cash flow. Group medians across the names Ryufin tracks.