Is Ikena Oncology, Inc. overvalued or undervalued?

As of 7 November 2024, Ikena Oncology, Inc. has moved from a valuation grade of risky to does not qualify, indicating a significant downgrade in its investment appeal. The company's current valuation suggests it is overvalued, particularly given its negative financial metrics. Key ratios include a Price to Book Value of 0.58 and an EV to EBITDA of 0.87, both of which reflect a lack of profitability and operational efficiency. The company's ROE stands at -32.50%, further underscoring its financial struggles.
In comparison to peers, Ikena's valuation metrics are less favorable; for instance, CorMedix, Inc. is considered expensive with a P/E of 55.03, while Vigil Neuroscience, Inc. and Neoleukin Therapeutics, Inc. also do not qualify but have less negative valuations. The stock has underperformed against the S&P 500, with a year-to-date return of -18.29% compared to the S&P's 2.44%, reinforcing the notion that Ikena is not a compelling investment at its current price of 1.34.