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 that the stock is overvalued. The company exhibits a P/E ratio of 16, a Price to Book Value of 2.46, and an EV to EBITDA of 10.56, which are all relatively high compared to its peers. For instance, First Horizon Corp. has a P/E of 13.43, while SouthState Corp. boasts a more attractive valuation with a P/E of 15.16.
In light of these metrics, Commerce Bancshares appears overvalued compared to its industry peers. Furthermore, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -13.85% compared to the S&P 500's 13.30%, reinforcing the notion that the stock may not be a favorable investment at its current price.