Is X4 Pharmaceuticals, Inc. overvalued or undervalued?

As of 1 May 2025, X4 Pharmaceuticals, Inc. has moved from a risky to an attractive valuation grade. The company is currently considered undervalued, particularly given its price-to-book value of 1.08 and an EV to sales ratio of 0.47, which suggests that the market may not fully recognize its potential despite its current challenges. The EV to EBITDA ratio stands at -0.13, indicating negative earnings before interest, taxes, depreciation, and amortization, which is a notable concern.
In comparison to its peers, X4 Pharmaceuticals shows a more favorable valuation than Taysha Gene Therapies, Inc., which has a P/E ratio of -8.12, and Stoke Therapeutics, Inc., which has a P/E of 12.66. Despite the negative returns over the past year, with a decline of 92.01% compared to the S&P 500's gain of 10.26%, the current valuation metrics suggest that X4 Pharmaceuticals may present a buying opportunity for investors looking for potential recovery in the biotech sector.