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 currently exhibits a P/E ratio of 61, a Price to Book Value of 20.92, and an EV to EBITDA of 41.23, which suggests that while the stock may appear costly on a price-to-earnings basis, its strong return metrics (ROCE of 31.82% and ROE of 34.47%) indicate solid profitability.
In comparison to its peers, Kforce's P/E ratio is significantly higher than AMN Healthcare Services, Inc. at 20.16 and Kelly Services, Inc. at 5.57, which are both considered risky. Despite the attractive valuation grade, Kforce has underperformed against the S&P 500, with a year-to-date return of -51.96% compared to the index's 13.30%. This discrepancy highlights potential market concerns that may not be fully reflected in its valuation ratios.