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 appears undervalued, especially when considering its P/E ratio of 21, which is competitive against peers like Korn Ferry at 21.30 and Robert Half, Inc. at 20.53. Additionally, Barrett's EV to EBITDA ratio stands at 12.28, while its EV to Sales ratio is notably low at 0.73, suggesting that the market may not fully recognize its potential.
In comparison to the broader market, Barrett's stock has underperformed against the S&P 500 over multiple periods, with a year-to-date return of -4.19% compared to the S&P 500's 13.30%. This underperformance reinforces the notion that Barrett Business Services, Inc. is currently undervalued, particularly given its strong ROE of 24.42% and a high dividend yield of 19.84%.