Is Icahn Enterprises LP overvalued or undervalued?

As of 25 February 2022, the valuation grade for Icahn Enterprises LP has moved from very attractive to risky, indicating a significant shift in its financial outlook. The company appears to be overvalued based on its current metrics, particularly with a Price to Book Value of 1.80 and an EV to EBITDA ratio of 17.40, which is concerning given its negative earnings and returns. The return on equity (ROE) stands at -18.06%, further highlighting the company's struggles.
In comparison to its peers, Icahn Enterprises LP's valuation is notably higher than HF Sinclair Corp., which has an EV to EBITDA of 17.41, and PBF Energy, Inc., which has a negative EV to EBITDA ratio of -7.38. This suggests that Icahn Enterprises LP is not only underperforming but also priced at a premium relative to its peers despite its financial challenges. The company's stock has significantly underperformed against the S&P 500, with a one-year return of -48.02% compared to the index's 10.26%, reinforcing the notion that it is currently overvalued.