Is Entrada Therapeutics, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Entrada Therapeutics, Inc. has moved from very attractive to attractive. The company is currently assessed as undervalued, with a P/E ratio of 13, a Price to Book Value of 0.76, and a ROE of 5.94%. In comparison to its peers, Entrada's P/E ratio is significantly better than Avid Bioservices, Inc., which has a P/E of -5.25, and Enliven Therapeutics, Inc. at -11.18, indicating a more favorable valuation position.
Despite the attractive valuation, Entrada has faced significant stock performance challenges, with a year-to-date return of -59.28%, which starkly contrasts with the S&P 500's gain of 2.44% in the same period. This underperformance may suggest market skepticism regarding the company's growth prospects, despite its current valuation metrics indicating it is undervalued relative to its peers.