Is Xilio Therapeutics, Inc. overvalued or undervalued?

As of 8 August 2024, the valuation grade for Xilio Therapeutics, Inc. has moved from does not qualify to risky. The company is currently considered overvalued given its financial metrics and peer comparisons. Key ratios include a Price to Book Value of 3.39, an EV to EBIT of 0.91, and a ROCE of 73.83%. However, the negative EV to Sales ratio of -5.56 and a staggering ROE of -507.61% raise significant concerns about its financial health.
In comparison to its peers, Xilio Therapeutics has a valuation of -0.6341, while ADC Therapeutics SA and Veru, Inc. also fall into the risky category with valuations of -2.1005 and -2.2975, respectively. Notably, Kinnate Biopharma, Inc. is rated fair with a valuation of -1.1313, indicating a more favorable position within the industry. The company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -29.84% compared to the index's 2.44%, reinforcing the notion that Xilio Therapeutics is currently overvalued.