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SPS CommerceSPSC +4.37%84 Debt-to-EBITDA is 0.03 as of Jun. 2026, which is 82% below its 10-year median of 0.17. GuruFocus rates SPSC with a GF Score™ of 84/100 and a GF Value™ of $181.43 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,727 Software companies, SPS Commerce ranks better than 95.83% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for SPS Commerce's Debt-to-EBITDA or its related term are showing as below:
SPSC'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.03 Med: 0.17 Max: 0.44
Current: 0.03
During the past 13 years, the highest Debt-to-EBITDA Ratio of SPS Commerce was 0.44. The lowest was 0.03. And the median was 0.17.
SPSC's Debt-to-EBITDA is ranked better than 95.83% of 1727
companies
in the Software industry
Industry Median: 1.02
vs SPSC: 0.03
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
SPS Commerce Debt-to-EBITDA Related Terms
SPS Commerce Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for SPS Commerce's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SPSC vs PLUS, PDFS, INTA: Debt-to-EBITDA Comparison
For the Software - Application subindustry, SPS Commerce's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
SPS Commerce Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, SPS Commerce's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where SPS Commerce's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Jun. 2026) EBITDA data.
SPS Commerce (SPSC) has a Debt-to-EBITDA of 0.03 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on SPS Commerce. This is 82% below median its historical median of 0.17. Over the past decade, SPS Commerce's Debt-to-EBITDA has ranged from 0.03 to 0.44. According to the industry distribution chart, SPS Commerce ranks #72 out of 1727 companies in the Software industry, placing it in the top 4.2%.
Is SPS Commerce's Debt-to-EBITDA too high?
SPS Commerce's current Debt-to-EBITDA of 0.03 is 82% below median its 10-year median of 0.17. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 0.44. The Software industry median Debt-to-EBITDA is 1.02. SPS Commerce's value of 0.03 is 97.1% below this industry median. Based on the distribution chart, SPS Commerce ranks #72 out of 1727 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, SPS Commerce has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SPS Commerce's Debt-to-EBITDA compare to PLUS and PDFS?
According to the Software industry distribution chart, SPS Commerce ranks #72 out of 1727 companies for Debt-to-EBITDA. This places SPS Commerce in the top 4% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 1.02. SPS Commerce's value of 0.03 is 97.1% below this benchmark. Historically, SPS Commerce's own Debt-to-EBITDA has ranged from 0.03 to 0.44 over the past decade. While the company's 10-year median is 0.17 vs. the industry median of 1.02, SPS Commerce has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Software company?
The median Debt-to-EBITDA among Software companies is 1.02, based on 1,727 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SPS Commerce's current Debt-to-EBITDA of 0.03 is 97.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on SPS Commerce. For the Software industry, the median Debt-to-EBITDA is 1.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SPS Commerce's current Debt-to-EBITDA is 0.03, which is 82% below median its own 10-year median of 0.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SPS Commerce stock overvalued right now?
Based on GuruFocus' analysis, SPS Commerce (SPSC) is currently considered Significantly Undervalued. The stock's GF Value™ is $181.43, compared to a current price of $80.80 — trading 55.5% below its estimated fair value. The current Debt-to-EBITDA is 0.03, which is 82% below median its 10-year median of 0.17 and 97.1% below the Software industry median of 1.02. SPS Commerce's overall GF Score™ is 84/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For SPS Commerce (SPSC), the current Debt-to-EBITDA is 0.03 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is SPS Commerce (SPSC) Overvalued in 2026?
Based on GuruFocus' analysis, SPS Commerce stock appears to be undervalued.
The current stock price of $80.80 is trading 55.5% below its estimated GF Value™ of $181.43.
GuruFocus considers SPS Commerce to be Significantly Undervalued.
Key valuation signals for SPSC:
Debt-to-EBITDA: 0.03 (82% below median its 10-year median of 0.17)
GF Value™: $181.43 vs. price of $80.80 (55.5% below fair value)
Industry Position: 97.1% below the Software median (#72 of 1727)
No single metric tells the full story. See the SPSC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SPS Commerce Inc is a provider of cloud-based supply chain management services for retailers, grocers, distributors, suppliers, and logistics firms to increase supply chain performance, optimize inventory levels and sell-through, reduce operational costs, improve order visibility, and satisfy consumer demands for a seamless omnichannel experience. Its solutions are delivered through the SPS Commerce platform and provide integrations and retail performance analytics to its customers. The company has one operating segment Supply Chain Management Solutions, that derives revenues from customers by providing access to cloud-based supply chain management services, primarily under subscription-based service arrangements.
84GF Score
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