Is Mastech Digital, Inc. overvalued or undervalued?

As of 15 May 2025, Mastech Digital, Inc. has moved from an expensive to a very expensive valuation grade. The company appears to be overvalued based on its current financial metrics. The P/E ratio stands at 41, significantly higher than the peer average of 20.28 for Barrett Business Services, Inc., which is considered attractive. Additionally, Mastech's EV to EBITDA ratio is 11.07, while its peers like Heidrick & Struggles International, Inc. have a much lower ratio of 5.93, further indicating overvaluation.
The company's ROCE is a mere 3.69%, and the ROE is only 2.44%, which are both considerably low compared to industry standards. The PEG ratio of 0.27 suggests that the stock is not growing at a rate that justifies its current price. Given the stark contrast in valuation ratios with peers and the negative stock performance relative to the S&P 500, Mastech Digital, Inc. is positioned as overvalued in the current market landscape.