Is iTeos Therapeutics, Inc. overvalued or undervalued?

As of 8 August 2024, iTeos Therapeutics, Inc. has moved from a grade of "does not qualify" to "risky." The company is currently considered overvalued based on its financial metrics. Key ratios include a Price to Book Value of 0.69, an EV to EBIT of 0.85, and an EV to EBITDA of 0.86, all indicating significant financial distress. The company's ROE stands at a troubling -23.22%, reflecting ongoing losses.
In comparison to its peers, iTeos Therapeutics has a less favorable valuation with an EV to EBITDA of 0.8967, while Avidity Biosciences, Inc. shows a much worse EV to EBITDA of -5.0262, and Janux Therapeutics, Inc. has an EV to EBITDA of -3.1688. The recent stock performance shows a 1-month return of 18.11%, significantly outperforming the S&P 500's 3.83% return, but the longer-term view reveals a decline of 31.69% over the past year, reinforcing the notion that the stock is currently overvalued.