Is CVR Energy, Inc. overvalued or undervalued?

As of 28 April 2025, the valuation grade for CVR Energy, Inc. has moved from attractive to risky, indicating a significant shift in its financial outlook. The company is currently assessed as overvalued, particularly given its negative P/E ratio due to losses and a Price to Book Value of 4.07, which suggests that the stock is trading at a premium relative to its book value. Additionally, the EV to EBITDA ratio stands at 31.63, further highlighting the company's inflated valuation compared to its earnings potential.
In comparison to its peers, CVR Energy's EV to EBITDA ratio is notably higher than that of Par Pacific Holdings, which is at 28.69, and Delek US Holdings, which has a negative EV to EBITDA of -336.08. Furthermore, CVR's ROE of -22.24% and ROCE of -9.82% underscore its struggles in generating returns. While the company has shown a strong YTD return of 43.54% compared to the S&P 500's 2.44%, this performance does not sufficiently justify its current valuation metrics, reinforcing the conclusion that CVR Energy, Inc. is overvalued.