Is Kforce, Inc. overvalued or undervalued?

As of 25 March 2025, Kforce, Inc. has moved from an expensive to a fair valuation grade. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 61, an EV to EBITDA of 41.23, and a ROE of 34.47%. In comparison, Korn Ferry, which is considered attractive, has a P/E ratio of 20.72, while Perficient, Inc. is categorized as expensive with a P/E of 34.11.
Despite Kforce's high valuation ratios, its recent performance shows a significant decline, with a year-to-date return of -28.01%, compared to a modest 2.44% return of the S&P 500. This underperformance may suggest that the market has adjusted its expectations, leading to a fair valuation status for Kforce, rather than indicating overvaluation.