Is DLH Holdings Corp. overvalued or undervalued?

As of 8 September 2025, the valuation grade for DLH Holdings Corp. has moved from expensive to fair. Based on the current metrics, the company appears fairly valued. The P/E ratio stands at 15, the Price to Book Value is 0.70, and the EV to EBITDA ratio is 5.72, indicating a reasonable valuation relative to its earnings and asset base.
In comparison to peers, Kforce, Inc. has a significantly higher P/E ratio of 49.41, while Kelly Services, Inc. shows a much lower P/E of 5.57, highlighting the varied valuation landscape within the industry. Despite the fair valuation, DLH Holdings Corp. has underperformed relative to the S&P 500, with a year-to-date return of -29.89% compared to the S&P 500's 12.22%, and a 1-year return of -42.78% against the S&P 500's 17.14%.