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. The company appears to be fairly valued based on its current metrics, particularly with a P/E ratio of 15, a price-to-book value of 0.70, and an EV to EBITDA ratio of 5.72. In comparison, peers such as Kforce, Inc. have a significantly higher P/E ratio of 49.41, while Kelly Services, Inc. shows a lower P/E of 5.57, highlighting the varying valuations within the industry.
Despite its fair valuation, DLH Holdings Corp. has underperformed relative to the S&P 500, with a year-to-date return of -31.51% compared to the index's 13.30%. This trend continues over longer periods, with a 3-year return of -56.25% against the S&P 500's 81.19%, suggesting that while the stock is fairly valued, its performance has not met market expectations.