Is Syros Pharmaceuticals, Inc. overvalued or undervalued?

As of 31 October 2024, the valuation grade for Syros Pharmaceuticals, Inc. has moved from risky to does not qualify, indicating a significant downgrade in its investment attractiveness. Based on the analysis, the company appears to be overvalued given its current financial metrics. The price to book value stands at -0.06, and the EV to EBITDA ratio is at 0.13, both suggesting that the company is not generating value relative to its capital structure.
In comparison to its peers, Syros Pharmaceuticals has a P/E ratio that is not applicable due to its loss-making status, while Avrobio, Inc. and Elicio Therapeutics, Inc. also reflect poor performance with P/E ratios of -6.62 and -2.81, respectively. Notably, Syros has an exceptionally high ROCE of 433.39%, but this is misleading given the negative book value for ROE. The company's stock has dramatically underperformed relative to the S&P 500, with a year-to-date return of -88.25% compared to the index's 2.44%. Overall, these factors suggest that Syros Pharmaceuticals is overvalued in the current market environment.