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, with a P/E ratio of 70, a Price to Book Value of 6.14, and an EV to EBITDA ratio of 38.05. In comparison to peers, monday.com Ltd. has a significantly higher P/E ratio of 242.18, while ZoomInfo Technologies, Inc. has a more favorable P/E of 27.49, indicating that SPS Commerce is positioned more competitively within its industry.
Despite the fair valuation, SPS Commerce has experienced substantial negative returns, with a year-to-date decline of 55.92% compared to a 16.30% increase in the S&P 500, and a one-year return of -51.28% against a 19.89% rise in the index. This stark contrast highlights the challenges the company faces in the current market environment.