Robert Half Inc.

NYSE:RHI Stock Report

Market Cap: US$7.2b

Robert Half Valuation

Is RHI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RHI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RHI ($72.61) is trading below our estimate of fair value ($153.76)

Significantly Below Fair Value: RHI is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RHI?

Key metric: As RHI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RHI. This is calculated by dividing RHI's market cap by their current earnings.
What is RHI's PE Ratio?
PE Ratio25.9x
EarningsUS$284.61m
Market CapUS$7.24b

Price to Earnings Ratio vs Peers

How does RHI's PE Ratio compare to its peers?

The above table shows the PE ratio for RHI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average35x
TNET TriNet Group
17.8x2.8%US$4.4b
KFY Korn Ferry
21.6x24.7%US$3.9b
MAN ManpowerGroup
74.4x41.2%US$2.8b
PAYC Paycom Software
26.1x2.4%US$12.1b
RHI Robert Half
25.9x17.3%US$7.2b

Price-To-Earnings vs Peers: RHI is good value based on its Price-To-Earnings Ratio (25.9x) compared to the peer average (35x).

Price to Earnings Ratio vs Industry

How does RHI's PE Ratio compare vs other companies in the US Professional Services Industry?

10 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CNDT Conduent
1.3x-104.3%US$569.21m
CIH China Index Holdings
3.5xn/aUS$87.15m
ALJJ ALJ Regional Holdings
0.7xn/aUS$70.26m
STCN Steel Connect
3.2xn/aUS$62.29m
RHI 25.9xIndustry Avg. 23.7xNo. of Companies16PE01632486480+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RHI is expensive based on its Price-To-Earnings Ratio (25.9x) compared to the US Professional Services industry average (23.7x).

Price to Earnings Ratio vs Fair Ratio

What is RHI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RHI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.9x
Fair PE Ratio28.7x

Price-To-Earnings vs Fair Ratio: RHI is good value based on its Price-To-Earnings Ratio (25.9x) compared to the estimated Fair Price-To-Earnings Ratio (28.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst RHI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$72.61
US$64.70
-10.9%
12.3%US$80.00US$53.00n/a10
Nov ’25US$67.57
US$64.70
-4.2%
12.3%US$80.00US$53.00n/a10
Oct ’25US$66.95
US$65.45
-2.2%
13.9%US$85.00US$55.00n/a10
Sep ’25US$62.67
US$64.05
+2.2%
15.2%US$85.00US$50.00n/a11
Aug ’25US$62.76
US$64.82
+3.3%
16.4%US$85.00US$50.00n/a11
Jul ’25US$63.65
US$70.91
+11.4%
15.7%US$95.00US$55.00n/a11
Jun ’25US$64.23
US$69.91
+8.8%
15.4%US$95.00US$55.00n/a11
May ’25US$69.25
US$69.91
+1.0%
15.4%US$95.00US$55.00n/a11
Apr ’25US$78.18
US$72.55
-7.2%
17.8%US$100.00US$55.00n/a11
Mar ’25US$80.76
US$72.55
-10.2%
17.8%US$100.00US$55.00n/a11
Feb ’25US$79.97
US$72.50
-9.3%
17.1%US$100.00US$55.00n/a12
Jan ’25US$87.92
US$72.00
-18.1%
16.4%US$100.00US$59.00n/a12
Dec ’24US$83.37
US$71.67
-14.0%
16.0%US$100.00US$59.00n/a12
Nov ’24US$73.98
US$75.62
+2.2%
16.4%US$100.00US$59.00US$67.5713
Oct ’24US$73.28
US$74.38
+1.5%
16.3%US$100.00US$53.00US$66.9513
Sep ’24US$74.98
US$73.29
-2.3%
17.1%US$100.00US$53.00US$62.6714
Aug ’24US$73.92
US$73.18
-1.0%
17.2%US$100.00US$53.00US$62.7614
Jul ’24US$75.22
US$74.14
-1.4%
17.2%US$100.00US$56.00US$63.6514
Jun ’24US$66.36
US$74.00
+11.5%
17.8%US$100.00US$56.00US$64.2313
May ’24US$73.16
US$73.33
+0.2%
18.4%US$100.00US$56.00US$69.2512
Apr ’24US$80.57
US$75.91
-5.8%
17.2%US$100.00US$60.00US$78.1811
Mar ’24US$80.84
US$75.42
-6.7%
16.7%US$100.00US$60.00US$80.7612
Feb ’24US$85.59
US$74.08
-13.4%
16.0%US$100.00US$60.00US$79.9712
Jan ’24US$73.83
US$74.45
+0.8%
18.9%US$105.00US$55.00US$87.9211
Dec ’23US$78.48
US$74.82
-4.7%
19.0%US$105.00US$55.00US$83.3711
Nov ’23US$77.33
US$75.36
-2.5%
18.5%US$105.00US$55.00US$73.9811

Analyst Forecast: Target price is lower than the current share price.

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