SPSC Valuation
SPS Commerce Inc
$
113.545
- Overview
- Forecast
- Valuation
- Earnings
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 26.32 is considered Undervalued compared with the five-year average of 55.19. The fair price of SPS Commerce Inc (SPSC) is between 175.48 to 246.53 according to relative valuation methord. Compared to the current price of 112.04 USD , SPS Commerce Inc is Undervalued By 36.15%.
Relative Value
Fair Zone
175.48-246.53
Current Price：112.04
36.15%
Undervalued
26.32
PE
1Y
3Y
5Y
Trailing
Forward
16.83
EV/EBITDA
SPS Commerce Inc. (SPSC) has a current EV/EBITDA of 16.83. The 5-year average EV/EBITDA is 32.41. The thresholds are as follows: Strongly Undervalued below 21.37, Undervalued between 21.37 and 26.89, Fairly Valued between 37.94 and 26.89, Overvalued between 37.94 and 43.46, and Strongly Overvalued above 43.46. The current Forward EV/EBITDA of 16.83 falls within the Strongly Undervalued range.
18.63
EV/EBIT
SPS Commerce Inc. (SPSC) has a current EV/EBIT of 18.63. The 5-year average EV/EBIT is 37.11. The thresholds are as follows: Strongly Undervalued below 24.09, Undervalued between 24.09 and 30.60, Fairly Valued between 43.63 and 30.60, Overvalued between 43.63 and 50.14, and Strongly Overvalued above 50.14. The current Forward EV/EBIT of 18.63 falls within the Strongly Undervalued range.
5.38
PS
SPS Commerce Inc. (SPSC) has a current PS of 5.38. The 5-year average PS is 9.77. The thresholds are as follows: Strongly Undervalued below 6.62, Undervalued between 6.62 and 8.20, Fairly Valued between 11.34 and 8.20, Overvalued between 11.34 and 12.91, and Strongly Overvalued above 12.91. The current Forward PS of 5.38 falls within the Strongly Undervalued range.
19.40
P/OCF
SPS Commerce Inc. (SPSC) has a current P/OCF of 19.40. The 5-year average P/OCF is 36.34. The thresholds are as follows: Strongly Undervalued below 23.78, Undervalued between 23.78 and 30.06, Fairly Valued between 42.62 and 30.06, Overvalued between 42.62 and 48.90, and Strongly Overvalued above 48.90. The current Forward P/OCF of 19.40 falls within the Strongly Undervalued range.
21.73
P/FCF
SPS Commerce Inc. (SPSC) has a current P/FCF of 21.73. The 5-year average P/FCF is 43.21. The thresholds are as follows: Strongly Undervalued below 27.36, Undervalued between 27.36 and 35.28, Fairly Valued between 51.13 and 35.28, Overvalued between 51.13 and 59.06, and Strongly Overvalued above 59.06. The current Forward P/FCF of 21.73 falls within the Strongly Undervalued range.
SPS Commerce Inc (SPSC) has a current Price-to-Book (P/B) ratio of 4.47. Compared to its 3-year average P/B ratio of 9.13 , the current P/B ratio is approximately -51.00% higher. Relative to its 5-year average P/B ratio of 9.08, the current P/B ratio is about -50.74% higher. SPS Commerce Inc (SPSC) has a Forward Free Cash Flow (FCF) yield of approximately 3.30%. Compared to its 3-year average FCF yield of 1.88%, the current FCF yield is approximately 75.35% lower. Relative to its 5-year average FCF yield of 1.92% , the current FCF yield is about 71.30% lower.
4.47
P/B
Median3y
9.13
Median5y
9.08
3.30
FCF Yield
Median3y
1.88
Median5y
1.92
Competitors Valuation Multiple
The average P/S ratio for SPSC's competitors is 3.72, providing a benchmark for relative valuation. SPS Commerce Inc Corp (SPSC) exhibits a P/S ratio of 5.38, which is 44.68% above the industry average. Given its robust revenue growth of 22.01%, this premium appears sustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of SPSC decreased by 43.91% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 153.60M to 187.40M.
The secondary factor is the Margin Expansion, contributed -10.31%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
Is SPS Commerce Inc (SPSC) currently overvalued or undervalued?
SPS Commerce Inc (SPSC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 26.32 is considered Undervalued compared with the five-year average of 55.19. The fair price of SPS Commerce Inc (SPSC) is between 175.48 to 246.53 according to relative valuation methord. Compared to the current price of 112.04 USD , SPS Commerce Inc is Undervalued By 36.15% .
What is SPS Commerce Inc (SPSC) fair value?
How does SPSC's valuation metrics compare to the industry average?
What is the current P/B ratio for SPS Commerce Inc (SPSC) as of Aug 18 2025?
What is the current FCF Yield for SPS Commerce Inc (SPSC) as of Aug 18 2025?
What is the current Forward P/E ratio for SPS Commerce Inc (SPSC) as of Aug 18 2025?