Is DHI Group, Inc. overvalued or undervalued?

As of 7 May 2025, the valuation grade for DHI Group, Inc. moved from expensive to risky, indicating a shift towards a more cautious outlook. The company appears to be overvalued, with a P/E ratio of 54, significantly higher than the industry average, and an EV to EBITDA ratio of 32.57, which also suggests elevated valuation levels. Additionally, the Price to Book Value stands at 1.65, further supporting the notion of overvaluation.
In comparison to peers, Kforce, Inc. has a P/E of 49.41 and an EV to EBITDA of 33.55, while Kelly Services, Inc. shows a much lower P/E of 5.57 and an EV to EBITDA of 3.96, highlighting the disparity in valuation metrics within the sector. Despite recent strong performance, with a year-to-date return of 67.23% compared to the S&P 500's 12.22%, the long-term outlook remains concerning, particularly with a 3-year return of -48.34% versus the S&P 500's 70.41%.