Is DLH Holdings Corp. overvalued or undervalued?

As of 21 November 2025, the valuation grade for DLH Holdings Corp. has moved from expensive to fair. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 15, a Price to Book Value of 0.70, and an EV to EBITDA of 5.72, which suggest that the stock is reasonably priced compared to its earnings and asset value.
In comparison to its peers, Kforce, Inc. has a significantly higher P/E ratio of 49.41, indicating a more expensive valuation, while Kelly Services, Inc. is considered risky with a P/E of 5.57. This positions DLH Holdings Corp. in a more favorable light within its industry. Notably, the company's stock has underperformed against the S&P 500 over multiple periods, with a year-to-date return of -22.67% compared to the S&P 500's 12.26%, highlighting the challenges it faces despite its fair valuation.