Is Sutro Biopharma, Inc. overvalued or undervalued?

As of 18 March 2021, Sutro Biopharma, Inc. has moved from a fair to a risky valuation grade. The company is currently considered overvalued based on its financial metrics. Key ratios include a Price to Book Value of -2.77, an EV to EBIT of -0.09, and an EV to Sales of 0.31, all indicating significant financial distress and negative performance.
In comparison to its peers, Sutro Biopharma's valuation metrics are notably worse than those of Ocular Therapeutix, Inc., which has a P/E of -6.73, and Akebia Therapeutics, Inc., with a P/E of -20.31. These comparisons highlight the challenges Sutro faces in the market. Additionally, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -56.59%, further reinforcing the notion of overvaluation.