Is Spero Therapeutics, Inc. overvalued or undervalued?

As of 27 March 2025, Spero Therapeutics, Inc. has moved from a fair to a risky valuation grade. The company is currently considered overvalued given its negative financial metrics, including a Price to Book Value of 4.13 and an EV to Sales ratio of 3.27, which are indicative of high valuation relative to its financial performance. Additionally, the company has a staggering ROE of -203.20%, reflecting significant losses.
In comparison to its peers, Spero Therapeutics, Inc. shows a less favorable position, with its EV to EBITDA at -1.04, while peers like Avrobio, Inc. and Shattuck Labs, Inc. also fall under the risky category but with less severe ratios of -1.2033 and 0.1885, respectively. The recent stock performance has been strong against the S&P 500, with a year-to-date return of 184.47%, but this does not mitigate the underlying financial risks that suggest the company is overvalued at its current price of 2.93.