Is Barrett Business Services, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Barrett Business Services, Inc. moved from expensive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, supported by a P/E ratio of 21, an EV to EBITDA of 12.28, and a dividend yield of 19.84%. In comparison, peers such as Korn Ferry and Robert Half, Inc. have P/E ratios of 21.30 and 20.53, respectively, suggesting that Barrett is competitively priced within its industry.
Despite the attractive valuation metrics, Barrett has underperformed against the S&P 500 over various periods, with a YTD return of -4.19% compared to the index's 13.30%. This trend continues over longer periods, with a 3-year return of -49.29% versus the S&P 500's 81.19%. Overall, while Barrett Business Services, Inc. presents a compelling valuation case, its recent stock performance raises questions about its market positioning.