SPS Commerce Inc (SPSC) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of SPS Commerce Inc $89.63, price $81.29, upside +10.3%, quality 66 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range $49.91 – $215.42 · fair‑value band $62.73 – $116.51 · the $81.29 price screens below the $89.63 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 24, 2026.
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SPS Commerce, Inc. provides cloud-based supply chain management solutions in the United States. It offers solutions through SPS Commerce, a cloud-based platform that connects retailers, brands, distributors, manufacturers, and logistics providers, handling the complexity of modern commerce operations.
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SPS Commerce, Inc. provides cloud-based supply chain management solutions in the United States. It offers solutions through SPS Commerce, a cloud-based platform that connects retailers, brands, distributors, manufacturers, and logistics providers, handling the complexity of modern commerce operations. The company also provides Fulfillment, a comprehensive solution designed to streamline supply chain operation that sends and receives order data, ensuring accurate execution of required processes from order to invoicing and revenue recovery through fully automated operations; and Analytics product that simplifies managing sell-through data from customers business partners that handle data acquisition, cleansing, normalization, and delivery. In addition, it offers various complimentary products, such as assortment product, which simplifies the communication of robust, accurate item data by automatically translating item attributes, and hierarchies through single connection across all sales channels; and relationship management product that allows organizations to accelerate digitization of their supply chain and improve collaboration with suppliers through change management, onboarding programs, and supplier score carding. The company was formerly known as St. Paul Software, Inc. and changed its name to SPS Commerce, Inc. in May 2001. SPS Commerce, Inc. was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.
Stock analysis
SPS Commerce Inc (SPSC) currently trades at $81.29, while our model-based Fair Value estimate is $89.63, implying the stock looks roughly 9.3% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $110.62 per share, and 11 of the 24 models we run sit above the $81.29 price.
Bear case: the Asset-Based group reads lowest at $17.77, and 13 of the 24 models stay below the price. Evidence for this calculation is medium.
Scenario range: $62.73 (bear) to $116.51 (bull), the price of $81.29 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 66/100 (solid quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
SPS Commerce Inc reported revenue of $752M in FY2025 versus $385M in FY2021, a compound +18.2%/yr. Reported net income was $93.3M in FY2025, compounding +20.3%/yr from FY2021.
Key figures
Market cap $3.1B · P/E ratio 33.7 · P/S ratio 4.19 · EPS (TTM) $2.41 · Net margin 12.4% · Return on equity 9.7% · Return on assets (EBIT) 9.5% · Operating margin 12.8%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (low confidence).
What moves the price
The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat.
The share trades about 28% below its 52-week high and 63% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at −13% fair-value upside, at 10%, SPSC screens cheaper than that median.
Fair Value models
Bear $62.73Fair Value $89.63Bull $116.51
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then ($1.76 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+17.8%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+18.6%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+19.2%
Start year 2020 (pandemic). Over 10 years: +16.8% a year
Revenue growth 18 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+20.8%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+15.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year+15.3%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.15% vs 34%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.16% → 16%
Start year 2020 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes less growth than the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+6.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+6.0%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +3.6% a year for the price and +3.6% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (92 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Application · 713 stocks
Beats the industry median on 6/13 measures
A mixed picture versus its industry peers.
Valuation
Quality Score66 · Top 25%
Fair Value upside+10% · Above median
Profitability
Return on equity (TTM)10% · Above median
Return on assets6% · Top 25%
Net margin (TTM)12% · Above median
Operating margin (TTM)13% · Above median
Growth and dividend
Revenue growth6% · Below median
Valuation Multiplesvs Software - Application median · lower = cheaper
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Is SPS Commerce Inc (SPSC) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $89.63 versus a price of $81.29, about +10% upside (undervalued).
What is the fair value of SPSC?
Our model-based fair value for SPS Commerce Inc is $89.63 (as of Sep 24, 2026), built from audited fundamentals. The current price: $81.29.
What is the quality score of SPSC?
SPS Commerce Inc has a Quality Score of 66/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for SPS Commerce Inc (SPSC)?
Our model-based price target is the fair value of $89.63 (as of Sep 24, 2026) from 24 valuation models. Cautious scenario $62.73, optimistic scenario $116.51. It is a calculation from audited fundamentals, not an analyst target.
What is the SPS Commerce Inc stock forecast for 2026?
Our models put fair value at $89.63, about +10% upside versus a price of $81.29 (undervalued). Cautious scenario $62.73, optimistic scenario $116.51. The calculation is refreshed regularly with new filings.
What is the revenue of SPS Commerce Inc (SPSC)?
SPS Commerce Inc reported trailing-twelve-month revenue of about $762M (latest available figure, as of Sep 24, 2026).
What growth is priced into SPS Commerce Inc (SPSC)?
For today's price to be fair in a discounted-cash-flow model, SPS Commerce Inc would have to grow free cash flow by +6.1 % per year for five years (discount rate 8.7 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +19.2 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of SPSC use?
Our models discount SPS Commerce Inc at 8.7 %: a base by market capitalisation (mid), damped by beta 0.56, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For SPS Commerce Inc that is +6.1 % per year a year over ten years, using the same discount rate (8.7 %) and the same formula as our fair value.
How much growth has SPS Commerce Inc (SPSC) delivered so far?
Over the past 5 years revenue at SPS Commerce Inc grew +19.2 % a year. The price currently implies +6.1 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of SPS Commerce Inc (SPSC) growing?
The median revenue growth in the sector is +8.3 % a year. That is the yardstick for the growth priced into SPS Commerce Inc (+6.1 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of SPS Commerce Inc (SPSC)?
The free-cash-flow yield on the price is 4.93 %: that much free cash flow SPS Commerce Inc produces per unit of market value. When it exceeds the discount rate of our models (8.7 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of SPS Commerce Inc (SPSC)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For SPS Commerce Inc it is $89.63 per share (as of Sep 24, 2026), against a price of $81.29. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is SPS Commerce Inc stock overvalued or undervalued in 2026?
As of Sep 24, 2026, SPSC trades below its calculated fair value: price $81.29, fair value $89.63, a gap of about +10% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of SPSC?
No. The price is what the market pays today ($81.29); the fair value is what the company's own numbers justify ($89.63). For SPS Commerce Inc the two are $8.34 per share apart. That gap is exactly why we show both numbers side by side.
How much is SPS Commerce Inc worth?
The market values SPS Commerce Inc at about $3.1B (market capitalisation, as of Sep 24, 2026). Per share that is $81.29; our models calculate a fair value of $89.63 per share.
What do the bullish and bearish scenarios say about SPSC?
Our models span a range for SPS Commerce Inc: cautious scenario $62.73, base $89.63, optimistic $116.51 per share (as of Sep 24, 2026, price $81.29). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of SPSC?
SPS Commerce Inc trades at a price-to-earnings ratio of 33.7 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $89.63 is built from several models across several years. Other multiples: PEG 4.7, P/B 3.2, P/S 4.1, EV/EBITDA 16.6.
What is the PEG ratio of SPSC?
The PEG ratio of SPS Commerce Inc is 4.71 (P/E divided by earnings growth, as of Sep 24, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of SPS Commerce Inc (SPSC)?
Balance-sheet figures for SPS Commerce Inc (as of Sep 24, 2026): return on equity 9.7%. They feed the Quality Score of 66/100, which measures business quality independently of the share price.
How far is SPSC from its 52-week high?
SPS Commerce Inc trades at $81.29, about 28% below its 52-week high of $113.04 and 63% above the low of $49.91 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of $89.63 is for.
Which stocks are comparable to SPS Commerce Inc?
From the same area (Technology) we also value SAP SE, Shopify Inc, Uber Technologies, Inc, Salesforce, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is SPS Commerce Inc stock attractive at the current price?
The data as of Sep 24, 2026: price $81.29, calculated fair value $89.63 (+10%), Quality Score 66/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of SPSC calculated?
We run SPS Commerce Inc through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $89.63, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.1 % above its aggregate fair value. SPS Commerce Inc currently trades 10 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of SPS Commerce Inc (SPSC)?
The closing price on Sep 23, 2026 was $81.29. Our model-based fair value is $89.63, about +10% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with SPS Commerce Inc right now?
A fairly wide model range ($62.73 to $116.51) leaves room in how you read the outcome. The price sits in the lower half of our model range, the side with the larger margin of safety. Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.
Where does the earnings growth of SPS Commerce Inc (SPSC) come from?
Earnings per share at SPS Commerce Inc grew +36.4 % a year from 2014 to 2025. Broken into its drivers: revenue per share +15.4 %, EBIT margin +15.8 %, tax rate +1.8 %, residual (interest, one-offs) +0.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of SPS Commerce Inc
How large is the market capitalisation of SPS Commerce Inc (SPSC)?
The market capitalisation of SPS Commerce Inc is $3.1B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of SPS Commerce Inc (SPSC)?
The price-to-sales ratio of SPS Commerce Inc is 4.19 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of SPS Commerce Inc (SPSC)?
Earnings per share at SPS Commerce Inc are $2.41 (price ÷ EPS = P/E 33.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of SPS Commerce Inc (SPSC)?
The net margin of SPS Commerce Inc is 12.4% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of SPS Commerce Inc (SPSC)?
The return on equity (ROE) of SPS Commerce Inc is 9.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of SPS Commerce Inc (SPSC)?
On an EBIT basis the return on assets of SPS Commerce Inc is 9.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of SPS Commerce Inc (SPSC)?
The operating margin of SPS Commerce Inc is 12.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at SPS Commerce Inc (SPSC)?
Revenue at SPS Commerce Inc is growing +5.8% versus a year earlier (3y avg +18.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at SPS Commerce Inc (SPSC)?
Earnings per share at SPS Commerce Inc are growing −9.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does SPS Commerce Inc (SPSC) hold?
SPS Commerce Inc holds more cash than debt, $141M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Some data
Sep 24, 2026