Is Entrada Therapeutics, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Entrada Therapeutics, Inc. has moved from fair to risky, indicating a more cautious outlook on the stock. The company appears to be overvalued, given its P/E ratio of 13, which is relatively high compared to its peers, such as Avid Bioservices, Inc. with a P/E of -5.25 and Alector, Inc. at -2.52. Additionally, Entrada's price to book value stands at 0.76, suggesting that the market values the company less than its net assets, which is a concerning sign for potential investors.
The EV to EBITDA ratio of -7.68 and EV to EBIT of -14.66 further highlight the company's struggles in generating earnings relative to its enterprise value, reinforcing the notion of overvaluation. In terms of stock performance, Entrada Therapeutics has significantly underperformed against the S&P 500, with a year-to-date return of -67.9% compared to the index's 12.22%. This stark contrast in returns underscores the challenges the company faces in the current market environment.