Is Sutro Biopharma, Inc. overvalued or undervalued?

As of 18 March 2021, the valuation grade for Sutro Biopharma, Inc. moved from fair to risky, indicating a deteriorating outlook. The company is overvalued based on its current financial metrics, which include a Price to Book Value of -2.77, an EV to EBIT of -0.09, and an EV to EBITDA of -0.09, all suggesting significant financial distress. In comparison to peers, Sutro's valuation ratios are notably worse; for instance, Akebia Therapeutics, Inc. has a P/E ratio of -30.59, while scPharmaceuticals, Inc. shows an EV to EBITDA of -4.64.
Recent stock performance further underscores this valuation concern, with Sutro Biopharma's year-to-date return at -50.93%, significantly lagging behind the S&P 500's positive return of 12.22%. Over the past year, Sutro has declined by 77.14%, while the S&P 500 has gained 17.14%, reinforcing the notion that the stock is currently overvalued.