PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, SPS Commerce's PE Ratio without NRI is 59.83. SPS Commerce's 5-Year EBITDA growth rate is 21.30%. Therefore, SPS Commerce's PEG Ratio for today is 2.81.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for SPS Commerce's PEG Ratio or its related term are showing as below:
SPSC'
s PEG Ratio Range Over the Past 10 Years
Min: 0.92 Med: 2.24 Max: 61.22
Current: 2.81
During the past 13 years, SPS Commerce's highest PEG Ratio was 61.22. The lowest was 0.92. And the median was 2.24.
SPSC's PEG Ratio is ranked worse than 72.15% of 772
companies
in the Software industry
Industry Median: 1.59
vs SPSC: 2.81
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
SPS Commerce PEG Ratio Historical Data
The historical data trend for SPS Commerce's PEG Ratio 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.
Competitive Comparison of SPS Commerce's PEG Ratio
For the Software - Infrastructure subindustry, SPS Commerce's PEG Ratio, along with its competitors' market caps and PEG Ratio 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's PEG Ratio Distribution in the Software Industry
For the Software industry and Technology sector, SPS Commerce's PEG Ratio distribution charts can be found below:
* The bar in red indicates where SPS Commerce's PEG Ratio falls into.
SPS Commerce PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
SPS Commerce's PEG Ratio for today is calculated as
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
SPS Commerce (NAS:SPSC) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
SPS Commerce PEG Ratio Related Terms
Thank you for viewing the detailed overview of SPS Commerce's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
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. Its products are; Fulfillment, Analytics, and Other products like Assortment and Community also it provides one-time services such as professional services and testing and certification. The group derives revenue from recurring monthly fees and set-up fees.
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