Is Resources Connection, Inc. overvalued or undervalued?

As of 2 January 2025, the valuation grade for Resources Connection, Inc. has moved from very attractive to risky. The company is currently deemed overvalued based on its financial metrics. Key ratios include a P/E ratio of 7, an EV to EBITDA of 5.38, and a Price to Book Value of 0.61, which suggest that the stock may not be a sound investment at its current price.
In comparison to its peers, Resources Connection, Inc. has a P/E ratio of 7.5156, while Viad Corp. is also risky with a P/E of -16.3976, and The Hackett Group, Inc. is fairly valued with a significantly higher P/E of 56.0905. The company's recent stock performance has been poor, with a year-to-date return of -38.57%, significantly underperforming the S&P 500's return of 2.44%. This further reinforces the view that Resources Connection, Inc. is overvalued in the current market context.