Is SPS Commerce, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for SPS Commerce, Inc. moved from expensive to fair. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 70, an EV to EBITDA ratio of 38.05, and a PEG ratio of 4.34. In comparison, peers such as monday.com Ltd. have a P/E ratio of 242.18, while CCC Intelligent Solutions Holdings, Inc. shows a more attractive P/E of 222.22.
Despite the fair valuation, SPS Commerce has underperformed significantly compared to the S&P 500, with a year-to-date return of -55.30% versus the S&P 500's 16.30%. This stark contrast in returns highlights the challenges the company faces in the current market environment.