Is Keros Therapeutics, Inc. overvalued or undervalued?

As of 13 August 2025, Keros Therapeutics, Inc. moved from an attractive to a fair valuation grade, indicating a shift in its perceived investment quality. The company appears to be overvalued given its high P/E ratio of 145, which is significantly above the industry average, and a PEG ratio of 1.42, suggesting that growth expectations may not justify the current price. Additionally, the EV to EBITDA ratio stands at 11.94, which further supports the notion of overvaluation when compared to its peers.
In terms of peer comparison, Keros Therapeutics has a P/E ratio of 33.47, while Day One Biopharmaceuticals, Inc. and Revance Therapeutics, Inc. exhibit risky valuations with negative P/E ratios. The company's recent stock performance shows a stark contrast to the S&P 500, with a one-year return of -71.21% compared to the index's 17.14%, reinforcing the view that Keros may be overvalued in the current market environment.