Is Barrett Business Services, Inc. overvalued or undervalued?

As of 7 May 2025, the valuation grade for Barrett Business Services, Inc. has moved from fair to attractive, indicating a positive shift in its valuation outlook. The company is currently considered undervalued, with a P/E ratio of 21, a Price to Book Value of 5.09, and an EV to EBITDA of 12.28. Notably, the company's ROE stands at a robust 24.42%, which further supports its attractiveness in the market.
In comparison to its peers, Barrett Business Services, Inc. has a more favorable valuation, with Cross Country Healthcare, Inc. exhibiting a risky P/E of -167.79 and Kelly Services, Inc. showing a P/E of 5.48. The industry average P/E is not specified, but Barrett's valuation metrics suggest it is positioned well against its competitors. Additionally, the company has demonstrated strong stock performance, with a 1-year return of 24.08%, significantly outperforming the S&P 500's 10.26% return over the same period, reinforcing its undervalued status.