Is Sarepta Therapeutics, Inc. overvalued or undervalued?

As of 6 May 2025, the valuation grade for Sarepta Therapeutics, Inc. has moved from very attractive to risky, indicating a significant shift in the company's perceived value. The company is currently overvalued, as evidenced by its negative P/E ratio and troubling financial metrics. Key ratios include a Price to Book Value of 3.70, an EV to EBIT of -41.31, and an EV to EBITDA of -77.97, all of which suggest underlying financial challenges.
In comparison to its peers, Sarepta's valuation appears unfavorable. For instance, Alnylam Pharmaceuticals has a P/E ratio of -827.79, while Royalty Pharma boasts a more attractive P/E of 10.83. Additionally, the company's recent stock performance has been dismal, with a year-to-date return of -84.48% compared to a modest 2.44% return for the S&P 500, reinforcing the notion that Sarepta is currently overvalued.