Is SPS Commerce, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for SPS Commerce, Inc. has 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 of 38.05, and a PEG ratio of 4.34. In comparison, CCC Intelligent Solutions Holdings, Inc. has a P/E ratio of 222.22, while ZoomInfo Technologies, Inc. has a lower P/E of 27.49, indicating that SPS Commerce is positioned more favorably within its peer group.
Despite the fair valuation, SPS Commerce has underperformed significantly against the S&P 500, with a year-to-date return of -55.14% compared to the index's 16.30%, highlighting a stark divergence in performance.