Is DHI Group, Inc. overvalued or undervalued?

As of 7 May 2025, the valuation grade for DHI Group, Inc. has moved from fair to risky. The company appears to be overvalued based on its high P/E ratio of 54, significantly above the industry average, and a low ROE of 3.08%. Additionally, the EV to EBITDA ratio stands at 8.58, which is relatively high compared to its peers.
In comparison, Barrett Business Services, Inc. has a more attractive P/E of 20.28 and an EV to EBITDA of 11.86, indicating a more favorable valuation. Other peers like Heidrick & Struggles International, Inc. are considered expensive with a P/E of 11.21, while DHI Group’s valuation metrics suggest it is not justified at its current price of 2.69. Despite recent stock performance showing a 51.98% return year-to-date compared to the S&P 500's 2.44%, the overall valuation indicates that DHI Group, Inc. is overvalued.