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

As of 17 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 peers like First Horizon Corp. at 13.43 and Cullen/Frost Bankers, Inc. at 13.94. Additionally, the Price to Book Value stands at 2.46, and the EV to EBITDA ratio is 10.56, both suggesting a premium compared to industry norms.
In terms of performance, Commerce Bancshares has underperformed relative to the S&P 500 across multiple time frames, with a year-to-date return of -13.85% compared to the S&P 500's 13.30%. This trend continues over longer periods, with a 3-year return of -26.06% against the S&P's 81.19%. Overall, these factors reinforce the conclusion that Commerce Bancshares is overvalued in the current market context.