Is The Hackett Group, Inc. overvalued or undervalued?

As of 18 June 2025, The Hackett Group, Inc. has moved from a fair to an expensive valuation grade. The company is currently considered overvalued, with a P/E ratio of 58, which significantly exceeds the industry average of approximately 56.1 for comparable firms. Additionally, the EV to EBITDA ratio stands at 33.88, further indicating a premium valuation compared to peers like CRA International, Inc., which has a P/E of 24.60 and an EV to EBITDA of 12.73.
The company's financial metrics also reveal a Price to Book Value of 12.24 and a ROCE of 30.18%, suggesting strong operational efficiency but at a high cost relative to its market price. Notably, the stock has underperformed against the S&P 500 on a year-to-date basis, with a return of -21.39% compared to the index's 2.44%. This combination of high valuation ratios and recent stock performance reinforces the conclusion that The Hackett Group, Inc. is overvalued in the current market environment.