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 is currently considered overvalued, given its high P/E ratio of 145, which significantly exceeds the industry average, and a PEG ratio of 1.42, indicating limited growth relative to its price. Additionally, the price-to-book value stands at 0.84, suggesting that the stock may not be reflecting its underlying asset value adequately.
In comparison to peers, Keros Therapeutics has a P/E ratio of 33.47, while Day One Biopharmaceuticals, Inc. and Revance Therapeutics, Inc. show negative P/E ratios, indicating their challenging financial situations. This stark contrast highlights Keros' relative overvaluation in the current market context. Although specific return data is not available, the absence of a recent stock vs. S&P 500 return comparison suggests a need for caution in investment decisions regarding Keros Therapeutics.