SPS Commerce, Inc.

NasdaqGS:SPSC Stock Report

Market Cap: US$5.2b

SPS Commerce Valuation

Is SPSC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SPSC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$149.52
Fair Value
8.7% undervalued intrinsic discount
11
Number of Analysts

Below Fair Value: SPSC ($136.49) is trading below our estimate of fair value ($149.52)

Significantly Below Fair Value: SPSC is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SPSC?

Key metric: As SPSC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SPSC. This is calculated by dividing SPSC's market cap by their current earnings.
What is SPSC's PE Ratio?
PE Ratio63.8x
EarningsUS$81.25m
Market CapUS$5.18b

Price to Earnings Ratio vs Peers

How does SPSC's PE Ratio compare to its peers?

The above table shows the PE ratio for SPSC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average43.8x
CWAN Clearwater Analytics Holdings
12.7x-13.68%US$5.7b
IDCC InterDigital
14.8x-27.55%US$5.8b
BILL BILL Holdings
123x9.20%US$4.7b
BOX Box
24.7x-13.19%US$4.8b
SPSC SPS Commerce
63.8x17.12%US$5.2b

Price-To-Earnings vs Peers: SPSC is expensive based on its Price-To-Earnings Ratio (63.8x) compared to the peer average (43.8x).

Price to Earnings Ratio vs Industry

How does SPSC's PE Ratio compare vs other companies in the US Software Industry?

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CCSI Consensus Cloud Solutions
4.9x9.10%US$410.95m
YXT YXT.COM Group Holding
1.3xn/aUS$51.65m
AMOD Alpha Modus Holdings
4.8xn/aUS$19.22m
MGTI MGT Capital Investments
1xn/aUS$498.13k
SPSC 63.8xIndustry Avg. 45.7xNo. of Companies11PE020406080100+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SPSC is expensive based on its Price-To-Earnings Ratio (63.8x) compared to the US Software industry average (45.7x).

Price to Earnings Ratio vs Fair Ratio

What is SPSC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SPSC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio63.8x
Fair PE Ratio33.4x

Price-To-Earnings vs Fair Ratio: SPSC is expensive based on its Price-To-Earnings Ratio (63.8x) compared to the estimated Fair Price-To-Earnings Ratio (33.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SPSC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$136.49
US$177.73
+30.21%
7.63%US$210.00US$159.00n/a11
Jul ’26US$138.87
US$178.23
+28.34%
7.71%US$210.00US$159.00n/a11
Jun ’26US$140.76
US$179.25
+27.34%
7.95%US$210.00US$159.00n/a10
May ’26US$142.09
US$179.25
+26.15%
7.95%US$210.00US$159.00n/a10
Apr ’26US$134.25
US$202.65
+50.95%
11.40%US$245.00US$163.00n/a10
Mar ’26US$133.20
US$201.23
+51.07%
10.88%US$245.00US$175.00n/a11
Feb ’26US$184.68
US$216.86
+17.43%
8.57%US$245.00US$187.50n/a11
Jan ’26US$183.99
US$222.70
+21.04%
8.72%US$250.00US$188.00n/a10
Dec ’25US$193.07
US$222.70
+15.35%
8.72%US$250.00US$188.00n/a10
Nov ’25US$166.47
US$225.44
+35.43%
8.22%US$250.00US$188.00n/a9
Oct ’25US$191.57
US$225.22
+17.57%
7.61%US$245.00US$186.00n/a9
Sep ’25US$199.74
US$225.22
+12.76%
7.61%US$245.00US$186.00n/a9
Aug ’25US$208.96
US$225.22
+7.78%
7.61%US$245.00US$186.00n/a9
Jul ’25US$189.10
US$207.78
+9.88%
6.46%US$225.00US$178.00US$138.879
Jun ’25US$188.09
US$207.78
+10.47%
6.46%US$225.00US$178.00US$140.769
May ’25US$178.97
US$204.89
+14.48%
5.74%US$225.00US$178.00US$142.099
Apr ’25US$184.24
US$204.00
+10.73%
6.64%US$220.00US$172.00US$134.259
Mar ’25US$189.04
US$202.50
+7.12%
6.73%US$220.00US$172.00US$133.208
Feb ’25US$181.74
US$194.00
+6.75%
7.07%US$215.00US$172.00US$184.688
Jan ’25US$193.84
US$193.43
-0.21%
7.53%US$215.00US$172.00US$183.997
Dec ’24US$177.75
US$192.86
+8.50%
8.01%US$215.00US$168.00US$193.077
Nov ’24US$161.10
US$187.86
+16.61%
9.48%US$215.00US$165.00US$166.477
Oct ’24US$170.61
US$189.71
+11.20%
9.73%US$215.00US$165.00US$191.577
Sep ’24US$181.04
US$189.71
+4.79%
9.73%US$215.00US$165.00US$199.747
Aug ’24US$175.16
US$189.71
+8.31%
9.73%US$215.00US$165.00US$208.967
Jul ’24US$192.06
US$168.71
-12.16%
9.63%US$205.00US$153.00US$189.107
AnalystConsensusTarget
Consensus Narrative from 11 Analysts
US$177.73
Fair Value
23.2% undervalued intrinsic discount
11
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/07/27 15:59
End of Day Share Price 2025/07/25 00:00
Earnings2025/03/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

SPS Commerce, Inc. is covered by 25 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Joseph VruwinkBaird
Ishan MajumdarBaptista Research
Jeffrey HoustonBarrington Research Associates, Inc.