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 to peers, monday.com Ltd. has a significantly higher P/E of 242.18, while ZoomInfo Technologies, Inc. shows a lower P/E of 27.49, highlighting the relative expense of SPS Commerce.
Despite a recent positive stock return of 2.02% over the past week compared to the S&P 500's 1.70%, the year-to-date return of -40.73% starkly contrasts with the S&P 500's 13.30%, suggesting that the company's stock has underperformed significantly over a longer horizon. Overall, the combination of high valuation ratios and poor performance against the benchmark supports the conclusion that SPS Commerce, Inc. is overvalued.