SPSC Relative Valuation
SPSC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, SPSC is overvalued; if below, it's undervalued.
Historical Valuation
SPS Commerce Inc (SPSC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 19.14 is considered Undervalued compared with the five-year average of 53.09. The fair price of SPS Commerce Inc (SPSC) is between 172.81 to 262.85 according to relative valuation methord. Compared to the current price of 83.50 USD , SPS Commerce Inc is Undervalued By 51.68%.
Relative Value
Fair Zone
172.81-262.85
Current Price：83.50
51.68%
Undervalued
19.17
PE
1Y
3Y
5Y
Trailing
Forward
11.98
EV/EBITDA
SPS Commerce Inc. (SPSC) has a current EV/EBITDA of 11.98. The 5-year average EV/EBITDA is 31.46. The thresholds are as follows: Strongly Undervalued below 17.54, Undervalued between 17.54 and 24.50, Fairly Valued between 38.41 and 24.50, Overvalued between 38.41 and 45.37, and Strongly Overvalued above 45.37. The current Forward EV/EBITDA of 11.98 falls within the Strongly Undervalued range.
13.24
EV/EBIT
SPS Commerce Inc. (SPSC) has a current EV/EBIT of 13.24. The 5-year average EV/EBIT is 35.90. The thresholds are as follows: Strongly Undervalued below 19.48, Undervalued between 19.48 and 27.69, Fairly Valued between 44.11 and 27.69, Overvalued between 44.11 and 52.32, and Strongly Overvalued above 52.32. The current Forward EV/EBIT of 13.24 falls within the Strongly Undervalued range.
3.96
PS
SPS Commerce Inc. (SPSC) has a current PS of 3.96. The 5-year average PS is 9.53. The thresholds are as follows: Strongly Undervalued below 5.59, Undervalued between 5.59 and 7.56, Fairly Valued between 11.50 and 7.56, Overvalued between 11.50 and 13.46, and Strongly Overvalued above 13.46. The current Forward PS of 3.96 falls within the Strongly Undervalued range.
14.08
P/OCF
SPS Commerce Inc. (SPSC) has a current P/OCF of 14.08. The 5-year average P/OCF is 35.15. The thresholds are as follows: Strongly Undervalued below 19.59, Undervalued between 19.59 and 27.37, Fairly Valued between 42.93 and 27.37, Overvalued between 42.93 and 50.71, and Strongly Overvalued above 50.71. The current Forward P/OCF of 14.08 falls within the Strongly Undervalued range.
17.10
P/FCF
SPS Commerce Inc. (SPSC) has a current P/FCF of 17.10. The 5-year average P/FCF is 41.67. The thresholds are as follows: Strongly Undervalued below 22.35, Undervalued between 22.35 and 32.01, Fairly Valued between 51.33 and 32.01, Overvalued between 51.33 and 60.99, and Strongly Overvalued above 60.99. The current Forward P/FCF of 17.10 falls within the Strongly Undervalued range.
SPS Commerce Inc (SPSC) has a current Price-to-Book (P/B) ratio of 3.29. Compared to its 3-year average P/B ratio of 8.61 , the current P/B ratio is approximately -61.82% higher. Relative to its 5-year average P/B ratio of 8.85, the current P/B ratio is about -62.88% higher. SPS Commerce Inc (SPSC) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.09%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.03% , the current FCF yield is about -100.00% lower.
3.29
P/B
Median3y
8.61
Median5y
8.85
4.71
FCF Yield
Median3y
2.09
Median5y
2.03
Competitors Valuation Multiple
The average P/S ratio for SPSC's competitors is , providing a benchmark for relative valuation. SPS Commerce Inc Corp (SPSC) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 16.02%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of SPSC decreased by 54.55% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 163.69M to 189.90M.
The secondary factor is the Margin Expansion, contributed -6.07%to the performance.
Overall, the performance of SPSC in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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