Is Kura Oncology, Inc. overvalued or undervalued?

As of 26 February 2025, Kura Oncology, Inc. has moved from a "does not qualify" to a "risky" valuation grade. The company appears to be overvalued given its financial metrics, particularly with a Price to Book Value of 1.60 and an EV to EBITDA ratio of 0.32, which suggests that the market may be pricing in future growth that is not currently supported by earnings. Additionally, the company's ROCE stands at a high 72.06%, but this is contrasted by a negative ROE of -49.91%, indicating inefficiencies in generating returns for shareholders.
In comparison to its peers, Kura's valuation metrics are concerning; for instance, its EV to EBITDA of -0.3981 is significantly lower than the industry average, suggesting that it is not generating sufficient earnings relative to its enterprise value. The stock has not shown recent returns against the S&P 500, which further complicates the investment narrative. Overall, Kura Oncology, Inc. is currently overvalued based on its financial ratios and peer comparisons.