CVR Energy, Inc.
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$26.96
Market Price
$54.83
Overvalued By
103.4%
Method: 10-year unlevered FCF DCF: $300M normalized free cash flow base, well below the $344M TTM figure to reflect currently elevated and historically volatile refining crack spreads; 2% annual FCF growth years 1-5; 1.5% years 6-10; 10% discount rate; 2% terminal growth; $1.06B net debt; 100.53M shares outstanding.
Reasoning: CVR Energy's refining and fertilizer earnings are highly cyclical and dependent on crack spreads that are currently well above historical mid-cycle averages, so a heavily normalized FCF base and an elevated discount rate were used; this is directionally consistent with Street analyst price targets that also imply significant downside from the current price.