Sps Commerce Stock Current Valuation
| SPSC Stock | USD 171.12 0.52 0.30% |
Valuation analysis of SPS Commerce helps investors to measure SPS Commerce's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. As of April 24, 2024, Enterprise Value Over EBITDA is expected to decline to 59.46. In addition to that, Enterprise Value Multiple is expected to decline to 59.46. Fundamental drivers impacting SPS Commerce's valuation include:
Price Book 9.4268 | Enterprise Value 6 B | Enterprise Value Ebitda 53.8481 | Price Sales 11.7192 | Forward PE 67.1141 |
Overvalued
Today
Please note that SPS Commerce's price fluctuation is very steady at this time. Calculation of the real value of SPS Commerce is based on 3 months time horizon. Increasing SPS Commerce's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for SPS Commerce is useful when determining the fair value of the SPS stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of SPS Commerce. Since SPS Commerce is currently traded on the exchange, buyers and sellers on that exchange determine the market value of SPS Stock. However, SPS Commerce's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 171.12 | Real 149.92 | Target 193.83 | Hype 170.6 | Naive 168.64 |
The real value of SPS Stock, also known as its intrinsic value, is the underlying worth of SPS Commerce Company, which is reflected in its stock price. It is based on SPS Commerce's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of SPS Commerce's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence SPS Commerce's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of SPS Commerce helps investors to forecast how SPS stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of SPS Commerce more accurately as focusing exclusively on SPS Commerce's fundamentals will not take into account other important factors: SPS Commerce Company Current Valuation Analysis
SPS Commerce's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current SPS Commerce Current Valuation | 5.97 B |
Most of SPS Commerce's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, SPS Commerce is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
SPS Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for SPS Commerce is extremely important. It helps to project a fair market value of SPS Stock properly, considering its historical fundamentals such as Current Valuation. Since SPS Commerce's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of SPS Commerce's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of SPS Commerce's interrelated accounts and indicators.
Click cells to compare fundamentals
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, SPS Commerce has a Current Valuation of 5.97 B. This is 69.07% lower than that of the Software sector and significantly higher than that of the Information Technology industry. The current valuation for all United States stocks is 64.07% higher than that of the company.
SPS Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses SPS Commerce's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of SPS Commerce could also be used in its relative valuation, which is a method of valuing SPS Commerce by comparing valuation metrics of similar companies.SPS Commerce is currently under evaluation in current valuation category among related companies.
SPS Fundamentals
| Return On Equity | 0.11 | ||||
| Return On Asset | 0.0645 | ||||
| Profit Margin | 0.12 % | ||||
| Operating Margin | 0.16 % | ||||
| Current Valuation | 5.97 B | ||||
| Shares Outstanding | 37.09 M | ||||
| Shares Owned By Insiders | 0.62 % | ||||
| Shares Owned By Institutions | 99.38 % | ||||
| Number Of Shares Shorted | 609.71 K | ||||
| Price To Earning | 103.21 X | ||||
| Price To Book | 9.43 X | ||||
| Price To Sales | 11.72 X | ||||
| Revenue | 536.91 M | ||||
| Gross Profit | 297.81 M | ||||
| EBITDA | 110.6 M | ||||
| Net Income | 65.82 M | ||||
| Cash And Equivalents | 259.24 M | ||||
| Cash Per Share | 7.20 X | ||||
| Total Debt | 14.03 M | ||||
| Debt To Equity | 0.04 % | ||||
| Current Ratio | 3.61 X | ||||
| Book Value Per Share | 18.13 X | ||||
| Cash Flow From Operations | 132.3 M | ||||
| Short Ratio | 3.33 X | ||||
| Earnings Per Share | 1.76 X | ||||
| Price To Earnings To Growth | 4.71 X | ||||
| Target Price | 203.5 | ||||
| Number Of Employees | 2.49 K | ||||
| Beta | 0.8 | ||||
| Market Capitalization | 6.33 B | ||||
| Total Asset | 823.84 M | ||||
| Retained Earnings | 259.05 M | ||||
| Working Capital | 270.77 M | ||||
| Current Asset | 166.79 M | ||||
| Current Liabilities | 24.23 M | ||||
| Net Asset | 823.84 M |
About SPS Commerce Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze SPS Commerce's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of SPS Commerce using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of SPS Commerce based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
SPS Commerce Investors Sentiment
The influence of SPS Commerce's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in SPS. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to SPS Commerce's public news can be used to forecast risks associated with an investment in SPS. The trend in average sentiment can be used to explain how an investor holding SPS can time the market purely based on public headlines and social activities around SPS Commerce. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
SPS Commerce's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for SPS Commerce's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average SPS Commerce's news discussions. The higher the estimated score, the more favorable is the investor's outlook on SPS Commerce.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards SPS Commerce in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, SPS Commerce's short interest history, or implied volatility extrapolated from SPS Commerce options trading.
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When determining whether SPS Commerce offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of SPS Commerce's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Sps Commerce Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Sps Commerce Stock:Check out SPS Commerce Piotroski F Score and SPS Commerce Altman Z Score analysis. For information on how to trade SPS Stock refer to our How to Trade SPS Stock guide.You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Complementary Tools for SPS Stock analysis
When running SPS Commerce's price analysis, check to measure SPS Commerce's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy SPS Commerce is operating at the current time. Most of SPS Commerce's value examination focuses on studying past and present price action to predict the probability of SPS Commerce's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move SPS Commerce's price. Additionally, you may evaluate how the addition of SPS Commerce to your portfolios can decrease your overall portfolio volatility.
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Is SPS Commerce's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of SPS Commerce. If investors know SPS will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about SPS Commerce listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.185 | Earnings Share 1.76 | Revenue Per Share 14.651 | Quarterly Revenue Growth 0.188 | Return On Assets 0.0645 |
The market value of SPS Commerce is measured differently than its book value, which is the value of SPS that is recorded on the company's balance sheet. Investors also form their own opinion of SPS Commerce's value that differs from its market value or its book value, called intrinsic value, which is SPS Commerce's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because SPS Commerce's market value can be influenced by many factors that don't directly affect SPS Commerce's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between SPS Commerce's value and its price as these two are different measures arrived at by different means. Investors typically determine if SPS Commerce is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SPS Commerce's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.