Barrett Business Services, Inc. (BBSI) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-24.2%

$25.31

vs $33.40 price

Levered DCF

$14.26

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

3.45

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	17×	21.4×	15.4×	14.05×	13.71×	15.22×	13.96×	11.01×
P/B	3.81×	5.12×	3.91×	3.74×	2.5×	2.61×	3.92×	3.53×
P/S	0.74×	0.99×	0.73×	0.63×	0.55×	0.59×	0.72×	0.45×
EV / EBITDA	10.59×	14.04×	9.57×	8.3×	8.46×	9.77×	9.85×	9.44×
Gross margin	21.0%	22.1%	22.7%	22.3%	21.4%	20.8%	22.1%	19.8%
Operating margin	5.0%	5.2%	5.7%	5.6%	4.6%	4.1%	5.4%	3.9%
Net margin	4.4%	4.6%	4.7%	4.5%	4.0%	3.8%	5.1%	4.0%
Current ratio	1.29×	1.32×	1.3×	1.36×	1.29×	1.4×	1.24×	0.98×
Debt / equity	0.1×	0.1×	0.11×	0.12×	0.12×	0.14×	0.17×	0.04×
Interest coverage	142.9×	335.85×	365.36×	418.26×	118.07×	29.06×	28.22×	35.16×
Dividend yield	0.9%	0.7%	1.0%	1.3%	1.7%	1.8%	1.2%	1.7%
Payout ratio	15.0%	15.3%	16.0%	18.0%	23.8%	27.0%	17.0%	19.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	22.6%	23.9%	25.4%	26.6%	18.3%	17.0%	28.1%	32.0%
Return on invested capital	12.5%	11.4%	11.6%	11.9%	7.5%	5.8%	7.6%	7.3%
Return on assets	7.0%	7.1%	7.0%	6.9%	5.1%	4.4%	5.6%	5.0%
Free cash flow yield	5.1%	-0.4%	7.1%	1.8%	-4.3%	-7.1%	9.8%	15.3%
Earnings yield	5.9%	4.7%	6.5%	7.1%	7.3%	6.5%	7.2%	9.1%
Enterprise value	$847.8M	$1.1B	$729.5M	$594.8M	$476.8M	$475.8M	$658.1M	$389.1M
Net debt / EBITDA	-0.88×	-0.43×	-0.66×	-0.98×	-0.78×	-0.84×	-0.24×	-0.76×
Cash conversion cycle (days)	71	73	58	53	57	49	61	115