Is SPS Commerce, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for SPS Commerce, Inc. has moved from attractive to expensive, indicating a shift in perception regarding its market value. The company appears overvalued based on its current metrics, with a P/E ratio of 70, an EV to EBITDA of 38.05, and a PEG ratio of 4.34, all significantly higher than typical industry benchmarks.
In comparison to its peers, SPS Commerce's P/E ratio of 52.78 is notably lower than that of monday.com Ltd., which has a P/E of 242.18, but still reflects a premium valuation. Additionally, CCC Intelligent Solutions Holdings, Inc. presents a more attractive valuation with a P/E of 222.22. While SPS Commerce has performed better than the S&P 500 in the short term, with a 1-week return of 2.02% compared to 1.70%, its year-to-date return of -40.73% starkly contrasts with the S&P 500's 13.30%, reinforcing the notion that the stock may be overvalued given its long-term performance challenges.