Mastech Digital, Inc. (MHH) 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

+56.4%

$10.17

vs $6.50 price

Levered DCF

$22.30

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

5.4

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	134.75×	51.38×	-13.82×	14.68×	15.95×	18.28×	10.96×	10.33×
P/B	0.92×	1.99×	1.2×	1.48×	2.62×	3.02×	2.64×	2.01×
P/S	0.43×	0.87×	0.49×	0.53×	0.88×	0.92×	0.63×	0.39×
EV / EBITDA	11.18×	15.96×	-15.81×	7.05×	10.98×	10.91×	10.57×	7.97×
Gross margin	27.7%	27.9%	25.4%	26.1%	26.8%	26.6%	24.8%	24.0%
Operating margin	0.0%	1.9%	-4.6%	5.0%	7.9%	6.9%	8.8%	6.6%
Net margin	0.3%	1.7%	-3.5%	3.6%	5.5%	5.1%	5.8%	3.8%
Current ratio	3.26×	3.22×	2.84×	2.72×	2.01×	1.87×	1.93×	2.28×
Debt / equity	0.04×	0.04×	0.06×	0.06×	0.25×	0.35×	0.68×	1.13×
Interest coverage	0×	0×	0×	34.08×	26.09×	13.58×	9.38×	0×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	0.7%	3.9%	-8.8%	10.1%	16.4%	16.6%	24.1%	19.5%
Return on invested capital	0.0%	3.2%	-8.5%	9.3%	13.7%	12.2%	15.8%	10.4%
Return on assets	0.5%	3.1%	-6.8%	8.0%	10.7%	9.7%	12.3%	7.2%
Free cash flow yield	13.1%	3.6%	16.0%	9.2%	1.7%	11.7%	12.3%	-1.8%
Earnings yield	0.7%	2.0%	-7.3%	6.8%	6.3%	5.5%	9.1%	9.7%
Enterprise value	$49M	$149.9M	$81.8M	$125.4M	$206.9M	$192.5M	$150.5M	$106.4M
Net debt / EBITDA	-7.52×	-2.55×	3.1×	-0.12×	0.62×	0.74×	1.99×	2.8×
Cash conversion cycle (days)	41	46	43	55	60	54	51	68