Is Stoke Therapeutics, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Stoke Therapeutics, Inc. has moved from fair to expensive, indicating that the company is overvalued. Key valuation ratios include a P/E ratio of 12, an EV to EBITDA of 5.94, and a PEG ratio of 0.09, which suggest that while the company has some attractive growth potential, it is currently priced higher than its fundamentals warrant.
In comparison to peers, Stoke Therapeutics has a significantly higher P/E ratio of 22.96 compared to CorMedix, Inc. at 18.60, which is considered very attractive, and Taysha Gene Therapies, Inc. which is deemed risky with a negative P/E. This disparity highlights that Stoke is trading at a premium relative to its more favorably valued peers. Additionally, Stoke Therapeutics has outperformed the S&P 500 over multiple periods, with a year-to-date return of 203.99% compared to the S&P 500's 13.30%, but this strong performance does not mitigate its current overvaluation.