Is Robert Half, Inc. overvalued or undervalued?

As of 20 February 2025, the valuation grade for Robert Half, Inc. has moved from expensive to fair. The company is currently fairly valued. Key ratios include a P/E ratio of 22, an EV to EBITDA of 12.99, and a dividend yield of 5.18%. In comparison, ManpowerGroup, Inc. is rated as very attractive with a P/E of 32.77 and an EV to EBITDA of 12.18, indicating that Robert Half is positioned more conservatively within its peer group.
Despite the fair valuation, Robert Half has experienced significant underperformance relative to the S&P 500, with a year-to-date return of -42.72% compared to the index's 2.44%. This stark contrast in performance may suggest a potential opportunity for investors, as the company's solid ROCE of 23.07% and ROE of 15.63% indicate strong operational efficiency.