Is CVR Partners LP overvalued or undervalued?

As of 23 February 2022, the valuation grade for CVR Partners LP moved from risky to very attractive, indicating a significant improvement in its investment profile. The company is currently considered undervalued, with a P/E ratio of 12, an EV to EBITDA of 6.89, and a ROE of 25.00%. These metrics suggest that the company is performing well relative to its earnings and returns on equity.
In comparison to its peers, CVR Partners LP's P/E ratio of 12.50 is notably lower than LSB Industries, Inc., which is at -21.99, and higher than Oil-Dri Corp. of America, which stands at 22.31. The EV to EBITDA ratio of 6.89 also positions CVR favorably against its peers, particularly when considering LSB Industries' ratio of 12.67. Additionally, the company's stock has outperformed the S&P 500 over the past year, with a return of 19.91% compared to the index's 10.26%, further reinforcing its undervalued status.