Is Korn Ferry overvalued or undervalued?

As of 11 March 2025, Korn Ferry's valuation grade has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently assessed as undervalued, with a P/E ratio of 22, which is lower than the peer average of 20.72 for comparable firms like Perficient, Inc. and Insperity, Inc., which have P/E ratios of 34.11 and 52.84, respectively. Additionally, Korn Ferry's EV to EBITDA stands at 11.04, again more favorable compared to its peers, suggesting a strong operational efficiency relative to its market valuation.
Korn Ferry's PEG ratio of 0.30 further supports the undervaluation narrative, indicating that the stock may be undervalued relative to its growth prospects. The company's ROCE of 24.56% and ROE of 13.05% also highlight its effective use of capital and shareholder equity, reinforcing its attractive investment profile. Despite recent stock performance lagging behind the S&P 500 over the past year, Korn Ferry's strong fundamentals and favorable ratios suggest it remains a compelling investment opportunity.