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, indicating a shift in perception regarding its financial health. The company appears to be overvalued given its high Price to Book Value of 3.39 and low EV to EBIT of 0.91, alongside a troubling ROE of -507.61%. Compared to peers, Xilio's valuation metrics are concerning; for instance, ADC Therapeutics SA has a more negative EV to EBITDA of -4.7475, while Kinnate Biopharma, Inc. shows a more favorable EV to EBITDA of 0.2381.
In terms of stock performance, Xilio has underperformed significantly against the S&P 500, with a year-to-date return of -20.06% compared to the index's 12.22%. This stark contrast reinforces the notion that the stock may be overvalued in the current market context.