Is Korro Bio, Inc. overvalued or undervalued?

As of 18 March 2025, the valuation grade for Korro Bio, Inc. moved from does not qualify to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of -3.38 and an EV to EBITDA ratio of -2.28, which are significantly below industry standards. Additionally, the lack of a PEG ratio suggests that growth expectations are not being met, further supporting the overvaluation assessment.
In comparison to peers, Korro Bio, Inc. is positioned unfavorably; for instance, its P/E ratio is considerably lower than the industry average, which typically reflects a more favorable valuation. The recent stock performance also highlights concerns, as Korro Bio's returns have been negative across multiple periods, including a -12.74% YTD return compared to a 12.22% gain for the S&P 500, reinforcing the notion that the stock may be overvalued in the current market context.