Kforce Inc. (KFRC) 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

-40.0%

$35.10

vs $58.50 price

Levered DCF

$35.94

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

7.94

Safe zone

Rating

B+

Overall 3 / 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	15.78×	21.64×	21.58×	14.58×	20.61×	15.76×	16.89×	13.21×
P/B	4.41×	7.05×	8.29×	6.03×	8.22×	4.91×	5.5×	4.54×
P/S	0.41×	0.78×	0.86×	0.64×	0.98×	0.63×	0.68×	0.54×
EV / EBITDA	12.01×	15.46×	15.25×	9.45×	15.12×	10.52×	12.13×	10.39×
Gross margin	26.8%	27.4%	27.9%	29.3%	28.9%	28.3%	29.3%	29.5%
Operating margin	3.8%	5.0%	5.7%	6.8%	6.7%	5.7%	5.6%	5.8%
Net margin	2.6%	3.6%	4.0%	4.4%	4.8%	4.0%	9.7%	4.1%
Current ratio	1.78×	2×	2.37×	2.11×	2.32×	3.13×	2.89×	2.75×
Debt / equity	0.67×	0.31×	0.36×	0.26×	0.63×	0.67×	0.51×	0.43×
Interest coverage	0×	0×	0×	8.1×	0×	23.86×	28.84×	0×
Dividend yield	5.0%	2.6%	2.1%	2.2%	1.3%	1.9%	1.8%	1.9%
Payout ratio	78.9%	56.0%	45.1%	31.9%	26.8%	30.0%	12.7%	25.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	27.9%	32.6%	38.4%	41.4%	39.9%	31.1%	78.2%	34.4%
Return on invested capital	14.6%	20.9%	24.1%	32.5%	23.1%	15.9%	18.9%	21.2%
Return on assets	9.5%	14.1%	17.1%	19.2%	14.9%	11.7%	34.3%	15.3%
Free cash flow yield	8.5%	7.3%	6.3%	7.5%	4.3%	11.6%	6.1%	10.8%
Earnings yield	6.3%	4.6%	4.6%	6.9%	4.9%	6.3%	14.2%	7.6%
Enterprise value	$630.4M	$1.1B	$1.4B	$1.1B	$1.6B	$899.9M	$986M	$837.9M
Net debt / EBITDA	1.54×	0.64×	0.64×	0.38×	0.2×	0.2×	0.81×	0.91×
Cash conversion cycle (days)	37	42	41	43	49	52	51	47