Is Kforce, Inc. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Kforce, Inc. has moved from fair to attractive, indicating a more favorable outlook. The company appears to be undervalued, particularly in light of its strong financial metrics. Key ratios include a P/E ratio of 61, an EV to EBITDA of 41.23, and a remarkable dividend yield of 106.63%.
In comparison to peers, Kforce's P/E ratio is significantly higher than AMN Healthcare Services, Inc. at 20.16 and Kelly Services, Inc. at 5.57, suggesting that while Kforce is currently seen as attractive, it may be overvalued relative to its earnings potential. Additionally, Kforce's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -45.70% compared to the S&P's 12.22%, reinforcing the notion of undervaluation despite its attractive grade.