Is Kforce, Inc. overvalued or undervalued?

As of 17 October 2025, Kforce, Inc. has moved from a very expensive to an attractive valuation grade, indicating a shift towards being undervalued. The company is currently assessed as undervalued, particularly when considering its P/E ratio of 61, which is significantly higher than its peer AMN Healthcare Services, Inc. at 20.16, and its EV to EBITDA ratio of 41.23 compared to the industry average. Additionally, Kforce boasts a robust ROE of 34.47%, suggesting strong profitability relative to its equity.
In comparison to its peers, Kforce's valuation metrics highlight a premium, with its P/E ratio exceeding that of Kelly Services, Inc. at 5.57 and Cross Country Healthcare, Inc. at 56.33. Despite recent underperformance, with Kforce's stock returning -51.96% YTD against the S&P 500's 13.30%, the attractive valuation suggests potential for recovery and growth moving forward.