Q2 Holdings (QTWO) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Q2 Holdings $55.84, price $55.66, upside +0.3%, quality 65 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? Yes
- Good quality? Yes
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Q2 Holdings
QTWO · USNeutralQuality growthThe stock looks roughly fairly valued with average quality.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range $20.87 – $110.85 · fair‑value band $39.10 – $72.60 · the $55.66 price screens below the $55.84 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 24, 2026.
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Company profile
Q2 Holdings, Inc. provides digital solutions to financial institutions, financial technology companies, FinTechs, and alternative finance companies (Alt-FIs) in the United States.
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Q2 Holdings, Inc. provides digital solutions to financial institutions, financial technology companies, FinTechs, and alternative finance companies (Alt-FIs) in the United States. The company offers Digital Banking Platform, an end-to-end digital banking platform that supports its financial institution customers in their delivery of retail, SMB, and commercial functionalities across digital channels; and risk and fraud solutions that are designed to support financial institutions' efforts to protect end users, comply with regulatory requirements and manage fraud risk efficiently. It also provides Q2 Innovation Studio, an application program interface and software development kit based open technology platform that allows financial institution customers, FinTechs, and other partners to deploy customized experiences and financial services to end users; and Helix, a cloud-native, real-time core processing platform that combines the services and functionality for companies and financial institutions. In addition, the company offers digital lending and relationship pricing solutions that support financial institutions, FinTechs and Alt-FIs in managing lending workflows, pricing strategies and customer relationships across commercial and consumer use cases, as well as offers loans, deposits and fee-based products. The company was formerly known as CBG Holdings, Inc. and changed its name to Q2 Holdings, Inc. in March 2013. Q2 Holdings, Inc. was founded in 2004 and is headquartered in Austin, Texas.
Stock analysis
Q2 Holdings (QTWO) currently trades at $55.66, while our model-based Fair Value estimate is $55.84, implying the stock looks roughly 0.3% fairly valued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $55.15 per share, and 5 of the 24 models we run sit above the $55.66 price.
Bear case: the Asset-Based group reads lowest at $7.08, and 19 of the 24 models stay below the price. Evidence for this calculation is medium.
Scenario range: $39.10 (bear) to $72.60 (bull), the price of $55.66 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 65/100 (solid quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Q2 Holdings reported revenue of $795M in FY2025 versus $499M in FY2021, a compound +12.4%/yr. Reported net income was $52.0M in FY2025.
Key figures
Market cap $3.6B · P/E ratio 49.3 · P/S ratio 3.22 · EPS (TTM) $1.13 · Net margin 6.5% · Return on equity 12.8% · Return on assets (EBIT) −4.0% · Operating margin 12.9%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 47 out of 100 (low confidence).
What moves the price
The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat.
The share trades about 27% below its 52-week high and 32% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at −13% fair-value upside, at 0%, QTWO screens cheaper than that median.
Fair Value models
All 24 models by family
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Set up alert →Quality Score breakdown
Of which business quality 67 · Market factors (momentum, volatility) 39
Revenue & earnings trend
Growth Forecast
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Compare Q2 Holdings with another stock
Price, fair value, quality and upside side by side.
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Application · 702 stocks
Valuation Multiplesvs Software - Application median · lower = cheaper
Strength profile in five axes (Snowflake)
Context: sector, industry, market
- Is the Information Technology sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Undervalued stocks: US Stocks
- Valuation of the USA market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Software - Application stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| SAP SE SAP | €182.32 | €159.06 | −13% |
| Shopify Inc SHOP | $147.74 | $64.36 | −56% |
| Uber Technologies, Inc UBER | $69.89 | $104.82 | +50% |
| Salesforce, Inc CRM | $233.28 | $344.41 | +48% |
| ServiceNow, Inc NOW | $137.00 | $150.70 | +10% |
| Cadence Design Systems, Inc CDNS | $302.95 | $225.14 | −26% |
| Snowflake Inc SNOW | $336.59 | $75.08 | −78% |
| Datadog, Inc DDOG | $247.48 | $32.92 | −87% |
| Adobe Inc ADBE | $238.25 | $454.04 | +91% |
| Automatic Data Processing, Inc ADP | $269.64 | $177.51 | −34% |
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Key figures of Q2 Holdings
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