Is RCM Technologies, Inc. overvalued or undervalued?

As of 17 October 2025, RCM Technologies, Inc. has moved from a very expensive valuation to an attractive one. The company appears to be undervalued, particularly when considering its P/E ratio of 24, which is lower than the peer average P/E of approximately 28.02, and its EV to EBITDA ratio of 13.80, which is also favorable compared to peers like Kforce, Inc. with an EV to EBITDA of 33.55. Additionally, RCM Technologies boasts a strong ROCE of 40.59% and ROE of 37.45%, indicating efficient use of capital and equity.
In terms of peer comparison, Kforce, Inc. is trading at a significantly higher P/E ratio of 49.41, while Kelly Services, Inc. is at a much lower P/E of 5.57, highlighting the diverse valuation landscape within the industry. Despite recent underperformance relative to the S&P 500 over the past week and month, RCM Technologies has shown impressive long-term returns, with a 5-year return of 1524.64%, suggesting that the stock may present a compelling buying opportunity at its current price of 22.42.