AlphaMadera's AlphaVal page classifies SPS Commerce, Inc. as a Platform & Compounding FCF business and values it using Two-stage FCF DCF, then compares the result to the current market price to flag SPSC as undervalued, fairly valued, or overvalued.

What is SPS Commerce, Inc.'s fair value?

Fair value for SPSC comes from a Two-stage FCF DCF model -- the approach AlphaVal selected for this company's Platform & Compounding FCF classification. The live AlphaVal page shows bear, base, and bull scenarios alongside the key assumption behind each.

How does AlphaMadera value SPSC?

AlphaVal routes each company to one of ten valuation archetypes based on its business model. SPSC was classified as Platform & Compounding FCF and is valued using Two-stage FCF DCF, built from SPSC's most recent reported fundamentals.

SPSC - SPS Commerce, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $73.80 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 85% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Mild

Trading 6.3% above fair value

Current Price $85.25

Bear Case $57.78 32.2% downside ($57.78 - $85.25) / $85.25 = -32.2% 7% stage 1 growth, 11% discount

Fair Value $80.23 5.9% downside ($80.23 - $85.25) / $85.25 = -5.9% 12% stage 1 growth, 11% discount

Bull Case $103.27 21.1% upside ($103.27 - $85.25) / $85.25 = 21.1% 15% stage 1 growth, 11% discount

Adjust Assumptions

DCF Stage 1 Growth Rate

11.7%

Discount Rate (WACC)

11.0%

Terminal Growth Rate

3.0%

Key Value Driver

FCF growth rate (12% base case)

Terminal Value % of EV 40%

Implied Market Multiple 26.1x

Market is pricing in (growth) 12.6% vs our 11.7% base

Plain-Language Summary

Using a two-stage FCF DCF with 12% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $80.23 per share.

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.

Average Target (23 analysts) $73.80

Analyst Range $59.00 – $100.00

Divergence from AlphaVal 9%

Warnings

⚠ Stock-based employee pay equals 58% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.

Key Risks

P/E alone misleads — earnings depressed by growth investment
Cyclical or commodity businesses may be misclassified as platforms
Terminal value dominance suggests sensitivity to long-run assumptions