Is DLH Holdings Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for DLH Holdings Corp. has moved from attractive to fair, indicating a shift in its perceived value. Based on the metrics available, the company appears to be overvalued. The P/E ratio stands at 15, while the EV to EBITDA ratio is 5.72, and the Price to Book Value is 0.70, which suggests that the stock may not be priced favorably compared to its earnings and book value.
In comparison to its peers, Kforce, Inc. has a significantly higher P/E ratio of 49.41, while Kelly Services, Inc. shows a lower P/E of 5.57, indicating a wide range of valuations within the industry. The recent performance of DLH Holdings Corp. has been notably poor, with a year-to-date return of -31.51%, contrasting sharply with the S&P 500's gain of 13.30% over the same period, reinforcing the notion that the stock is currently overvalued.