Is DLH Holdings Corp. overvalued or undervalued?

As of 3 October 2025, the valuation grade for DLH Holdings Corp. has moved from fair to expensive, indicating a shift towards overvaluation. The company is considered overvalued based on its P/E ratio of 15, which is significantly lower than the peer average of 18.10, and its EV to EBITDA ratio of 5.72, which also falls short of the industry benchmark. Additionally, the Price to Book Value stands at 0.70, suggesting that the stock is trading below its book value, yet this does not compensate for the overall expensive valuation.
In comparison to its peers, Kforce, Inc. has a much higher P/E ratio of 49.41, while Kelly Services, Inc. is at a lower P/E of 5.57, highlighting the mixed valuation landscape within the industry. Furthermore, DLH Holdings Corp. has underperformed relative to the S&P 500, with a year-to-date return of -31.38% compared to the index's 14.18%, reinforcing the notion of overvaluation amidst declining stock performance.