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

As of 14 November 2025, the valuation grade for Commerce Bancshares, Inc. has moved from expensive to fair. Based on the current metrics, the company appears to be fairly valued. Key valuation ratios include a P/E ratio of 16, a Price to Book Value of 2.46, and an EV to EBIT of 11.46. In comparison to peers, First Horizon Corp. has a P/E of 13.43 and Cullen/Frost Bankers, Inc. has a P/E of 13.95, indicating that Commerce Bancshares is priced slightly higher than some of its competitors.
Despite the fair valuation, the company's stock performance has lagged significantly behind the S&P 500, with a year-to-date return of -14.10% compared to the index's 14.49%. This trend continues over longer periods, with a 3-year return of -26.40% versus the S&P 500's 70.17%.