Is Mastech Digital, Inc. overvalued or undervalued?

As of 13 August 2025, the valuation grade for Mastech Digital, Inc. has moved from expensive to attractive. The company is currently considered undervalued, particularly given its P/E ratio of 41, which is significantly higher than the industry average, and a PEG ratio of 0.27, indicating strong growth potential relative to its price. Additionally, the EV to EBITDA ratio stands at 11.07, suggesting that the company is trading at a reasonable valuation compared to its earnings before interest, taxes, depreciation, and amortization.
In terms of peer comparison, Mastech Digital, Inc. has a P/E ratio of 104.49, which is much higher than Kelly Services, Inc. at 5.57 and RCM Technologies, Inc. at 28.02, indicating that Mastech is priced for growth compared to its peers. Despite this, the company has struggled with returns, showing a YTD decline of 49.23% compared to a 12.22% gain in the S&P 500, which underscores the disconnect between its valuation and market performance.