Is Barrett Business Services, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Barrett Business Services, Inc. moved from attractive to very attractive. The company appears undervalued based on its strong performance metrics, including a P/E ratio of 21, an EV to EBITDA of 12.28, and a notable ROE of 24.42%. In comparison to peers, Barrett's P/E ratio is slightly higher than Korn Ferry's 21.30 and Robert Half's 20.53, indicating that while it is competitive, it may still have room for growth.
Additionally, Barrett's stock has outperformed the S&P 500 over multiple periods, with a 1-year return of 26.27% compared to the S&P 500's 17.14%, and an impressive 3-year return of 133.97% versus 70.41% for the index. This performance reinforces the notion that Barrett Business Services, Inc. is positioned favorably in the market, supporting the conclusion of being undervalued.