Is Par Pacific Holdings, Inc. overvalued or undervalued?

As of 25 February 2025, the valuation grade for Par Pacific Holdings, Inc. has moved from expensive to risky. The company appears to be overvalued based on its current financial metrics, particularly given its negative P/E ratio and ROE of -8.90%. Key ratios include a Price to Book Value of 1.00, an EV to EBITDA of 25.39, and an EV to Sales of 0.31, which suggest that the company's valuation does not align well with its financial performance.
In comparison to its peers, Par Pacific Holdings, Inc. has a significantly higher EV to EBITDA ratio than HF Sinclair Corp. at 18.13 and PBF Energy, Inc. at -7.50, indicating that it is priced higher relative to its earnings potential. Additionally, the company has shown strong returns, with a year-to-date return of 117.39% compared to the S&P 500's 12.22%, which may reflect investor optimism despite the underlying financial challenges.