Is Sarepta Therapeutics, Inc. overvalued or undervalued?

As of 6 May 2025, the valuation grade for Sarepta Therapeutics, Inc. has moved from attractive to risky, indicating a significant deterioration in its valuation outlook. The company is currently overvalued, as evidenced by its Price to Book Value of 3.70 and an EV to Sales ratio of 2.17, both of which suggest that the stock is trading at a premium compared to its underlying assets and revenue generation capabilities. Additionally, the negative EV to EBITDA of -77.97 highlights the challenges the company faces in generating positive earnings before interest, taxes, depreciation, and amortization.
In comparison to its peers, Sarepta's valuation metrics are concerning; for instance, Viatris, Inc. has a P/E ratio of 44.86, while Walgreens Boots Alliance, Inc. shows a P/E of -14.12, both indicating a more favorable valuation relative to their earnings. Furthermore, Sarepta's recent stock performance has been dismal, with a year-to-date return of -84.77% compared to the S&P 500's gain of 12.22%, underscoring the disconnect between its current valuation and market sentiment.