Is GEE Group, Inc. overvalued or undervalued?

As of 14 August 2024, GEE Group, Inc. has moved from an attractive to a risky valuation grade. The company is currently considered overvalued based on its financial metrics. Key ratios include a Price to Book Value of 0.42, an EV to EBITDA of -2.36, and a ROE of -24.23%. These figures indicate significant financial distress, particularly with negative earnings and returns.
In comparison to its peers, GEE Group's valuation appears unfavorable. For instance, Heidrick & Struggles International, Inc. has a P/E ratio of 11.21, while RCM Technologies, Inc. boasts a P/E of 23.45, both of which highlight GEE Group's struggles within its industry. The company's recent stock performance has lagged behind the S&P 500, with a 1-year return of -39.12% compared to the index's 10.26%. Overall, GEE Group's financial indicators suggest that it is overvalued in the current market context.