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, indicating increased caution regarding its financial health. Based on the available metrics, the company appears to be overvalued. The price-to-book value stands at 0.67, while the EV to EBITDA ratio is 0.88, suggesting that the market may not be pricing in the company's significant losses adequately. Additionally, the return on capital employed (ROCE) is exceptionally high at 310.76%, but this is somewhat misleading given the negative return on equity (ROE) of -56.07%. In comparison to its peers, Kronos Bio, Inc. has a valuation of -1.1990, while Chimerix, Inc. is at -8.6897, and CytomX Therapeutics, Inc. is rated very attractive with a P/E of 7.4924. This highlights that Kronos is not only underperforming relative to a more attractive competitor but also suggests that its current valuation may not be justified given the negative trends. Over the past year, Kronos Bio has returned -15.38%, significantly underperforming the S&P 500's return of 17.14%, reinforcing the notion that the stock is overvalued in the current market context.