Is CrossAmerica Partners LP overvalued or undervalued?

As of 8 May 2024, the valuation grade for CrossAmerica Partners LP has moved from very attractive to risky, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 8, which is notably lower than peers such as Global Partners LP with a P/E of 11.39 and DNOW, Inc. at 16.71. Additionally, the EV to EBITDA ratio stands at 7.89, which, while competitive, still reflects concerns given the overall valuation downgrade.
The Price to Book Value is concerningly negative at -14.82, further emphasizing the risks associated with this investment. With a return on capital employed (ROCE) of 18.23%, the company shows some operational efficiency, but this is overshadowed by its negative return on equity (ROE) due to the negative book value. Overall, CrossAmerica Partners LP is currently overvalued compared to its peers and has underperformed against the S&P 500 in various time frames, particularly in the last month and year.