Is Commerce Bancshares, Inc. (Missouri) overvalued or undervalued?

As of 3 October 2025, the valuation grade for Commerce Bancshares, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 16, which is higher than the peer average of approximately 14.81, and its Price to Book Value of 2.46, which also exceeds the industry norms. Additionally, the EV to EBITDA ratio stands at 10.56, further supporting the notion of overvaluation compared to peers like East West Bancorp, Inc. with a more attractive valuation of 15.04.
In terms of peer comparison, Commerce Bancshares is less favorable than East West Bancorp, which has a P/E of 15.04, and SouthState Corp., which is rated very attractive with a P/E of 15.16. The company's recent stock performance has also lagged behind the S&P 500, with a year-to-date return of -5.04% compared to the index's 14.18%, suggesting that investor sentiment may be reflecting the company's overvalued status.