Is Keros Therapeutics, Inc. overvalued or undervalued?

As of 6 May 2025, Keros Therapeutics, Inc. has moved from a risky to an attractive valuation grade. The company is currently considered undervalued despite its high P/E ratio of 145, which is significantly higher than its peer Viking Therapeutics, Inc. at -23.15. The Price to Book Value stands at 0.84, indicating that the stock may be trading below its intrinsic value, while the EV to EBITDA ratio is at 11.94, suggesting that the company is generating reasonable earnings relative to its enterprise value.
In comparison to its peers, Keros Therapeutics shows a more favorable PEG ratio of 1.42 compared to the negative figures for its competitors. The return metrics indicate that Keros has underperformed the S&P 500 over various time frames, particularly with a 1-year return of -70.37% versus the S&P's 10.26%. Overall, the combination of the attractive valuation grade and the ratios suggests that Keros Therapeutics is undervalued in the current market.