How will the results impact the stock’s valuation multiples (EV/Revenue, P/E) and relative valuation vs peers?

Impact on valuation multiples

Because the press‑release only signals an upcoming earnings call and carries a very bullish sentiment score (10), the market will price‑in an expectation of “beat‑and‑raise” results. If Braze delivers revenue and billings growth that exceeds consensus, the stock’s EV/Revenue will compress (EV stays roughly constant while the denominator—revenue—grows faster), and the forward P/E will also tighten as the trailing‑12‑month earnings are upgraded. In other words, a strong Q2 will push the price higher while the expanding earnings base pulls the P/E down, leaving the EV/Rev ratio at a more attractive level than it has been in the past 12‑months.

If the results simply meet expectations, the multiples will hold steady; a miss would cause the EV/Revenue and P/E to expand as the price is discounted while the revenue/earnings base stays flat. Given the “very positive” sentiment, most investors will assume a beat, so the immediate reaction is likely a modest price rally that tightens the multiples.

Relative valuation vs peers

Braze trades in the same SaaS‑engagement niche as companies such as HubSpot (HH​), Twilio (now part of Segment), and Customer.io. The sector typically commands EV/Revenue in the 10‑15× range and forward P/E in the 30‑45× range, reflecting high‑growth SaaS dynamics. If Braze’s Q2 shows mid‑single‑digit to high‑single‑digit YoY revenue growth and a gross‑margin expansion (both of which are the primary drivers for peers), its EV/Revenue will likely move toward the lower end of the peer band (e.g., 9‑11×) while its forward P/E could settle in the 30‑35× range—still premium to the broader market but in line or slightly cheaper than the higher‑growth peers. Conversely, a weaker beat would push Braze’s multiples above the peer median, making it a relative over‑priced option.

Trading implication

• If you expect a beat: look for a short‑term price‑momentum breakout (technical support around the 20‑day SMA, bullish volume) and consider a long‑position on any pull‑back, banking on the now‑tighter multiples and upside relative to peers.
  
• If you anticipate a miss: the stock could see a sell‑off, widening EV/Revenue and P/E, making it a potential short‑or‑sell‑the‑high‑risk** play.
  

Overall, the market’s bullish tilt suggests the multiples will likely tighten, positioning Braze at a more attractive valuation relative to its SaaS peers—an actionable buying signal on any post‑earnings pull‑back.