Is CVR Energy, Inc. overvalued or undervalued?

As of 28 April 2025, the valuation grade for CVR Energy, Inc. has moved from expensive 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 4.07, an EV to EBITDA ratio of 31.63, and a Dividend Yield of 212.87%, which, while impressive, may not be sustainable given the company's negative returns on capital and equity.
In comparison to its peers, CVR Energy's EV to EBITDA ratio is significantly higher than that of PBF Energy, Inc. at -7.4957 and Delek US Holdings, Inc. at -82.9299, suggesting that it is trading at a premium despite its financial struggles. The company has outperformed the S&P 500 in multiple time frames, with a year-to-date return of 80.74% compared to the index's 12.22%, but this may not reflect long-term sustainability given its current financial metrics.