Is Delek US Holdings, Inc. overvalued or undervalued?

As of 7 May 2024, the valuation grade for Delek US Holdings, Inc. has moved from expensive to risky, indicating a shift in perception regarding its financial health. Based on the available metrics, the company appears to be overvalued, particularly given its negative P/E ratio and concerning return metrics. The Price to Book Value stands at 9.63, while the EV to Sales ratio is a low 0.34, suggesting that despite a high market price, the underlying value may not support it.
In comparison to its peers, Delek US Holdings shows a significantly worse EV to EBITDA ratio of -313.40 compared to HF Sinclair Corp.'s 18.1302 and PBF Energy, Inc.'s -7.4957, highlighting its struggles in generating earnings relative to its enterprise value. Additionally, the company's ROCE of -15.36% and ROE of -312.16% further emphasize its financial difficulties. Notably, Delek has outperformed the S&P 500 over the past year with a return of 60.44% compared to the index's 17.14%, but this does not mitigate the concerns raised by its valuation metrics.