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 to be overvalued given 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 EV to EBITDA ratio stands at 10.56, which is also on the higher side compared to the industry. The PEG ratio of 1.27 suggests that the stock may not be growing fast enough to justify its current price.
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 reinforces the notion that the stock may be overvalued, as it has consistently lagged behind the broader market.