Is Keros Therapeutics, Inc. overvalued or undervalued?

As of 17 October 2025, Keros Therapeutics, Inc. has moved from a very attractive to a fair valuation grade. The company appears to be overvalued given its high P/E ratio of 145, which significantly exceeds 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, indicating a premium valuation relative to earnings.
In comparison to peers, Keros Therapeutics, Inc. has a P/E ratio of 33.47, while Day One Biopharmaceuticals, Inc. and Revance Therapeutics, Inc. show negative P/E ratios, highlighting Keros's relative overvaluation. The company's recent performance has been poor, with a one-year return of -77.36% compared to the S&P 500's 14.08%, reinforcing the notion that the stock may be overvalued in the current market environment.