Is Keros Therapeutics, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Keros Therapeutics, Inc. has moved from very attractive to fair. 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, indicating that growth expectations may not justify the current price. Additionally, the Price to Book Value stands at 0.84, suggesting that the stock is trading below its book value, which could be a potential red flag.
In comparison to peers, Keros Therapeutics has a P/E of 33.47, while Day One Biopharmaceuticals, Inc. and Revance Therapeutics, Inc. are both classified as risky with negative P/E ratios, indicating a challenging environment for the sector. Notably, Keros has underperformed against the S&P 500, with a 1-year return of -77.36% compared to the index's 14.08%, reinforcing concerns about its current valuation.