Is Kronos Bio, Inc. overvalued or undervalued?

As of 10 May 2023, the valuation grade for Kronos Bio, Inc. has moved from does not qualify to risky. The company appears to be undervalued based on its current metrics, particularly with a Price to Book Value of 0.67 and an EV to EBITDA ratio of 0.88. Notably, the Return on Capital Employed (ROCE) stands at an impressive 310.76%, although the Return on Equity (ROE) is concerningly negative at -56.07%.
In comparison to peers, Kronos Bio, Inc. has a P/E ratio of -1.2058, which is significantly better than Chimerix, Inc. at -8.6897 and Capricor Therapeutics, Inc. at -10.1186. Despite its risky classification, the company's valuation metrics suggest it may be trading at a discount relative to its potential, especially when considering the broader market performance where it has underperformed the S&P 500 over the past year, returning -15.38% compared to the index's 10.26%.