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 towards overvaluation. The company appears overvalued based on its high P/E ratio of 70, a Price to Book Value of 6.14, and an EV to EBITDA of 38.05. In comparison, peers like ZoomInfo Technologies, Inc. have a P/E of 27.49 and an EV to EBITDA of 14.59, while CCC Intelligent Solutions Holdings, Inc. shows a P/E of 222.22, reflecting a more favorable valuation environment for some competitors.
Despite a recent positive return of 2.02% over the past week compared to the S&P 500's 1.70%, SPS Commerce has underperformed significantly on a year-to-date basis, with a return of -40.73% versus the S&P 500's 13.30%. This stark contrast in performance reinforces the notion that SPS Commerce is currently overvalued in the market.