APA Corporation (APA) Stock Valuation — PE Analysis
Oil & Gas Exploration & Production · NASDAQ
Current Price
$43.39
PE Ratio (TTM)
9.2x
Intrinsic Value
$44.55
+2.6% margin of safety
COMPETITIVE MOAT
↑Cost-Efficient Operations
APA's focus on operational efficiency and cost reduction, particularly in the Permian Basin, allows for competitive production costs. This enables profitability even with fluctuating commodity prices.
↑Geographic Diversification
APA's presence in multiple exploration and production regions, including the U.S. and international markets, mitigates single-region risk. This diversification supports consistent revenue streams.
↑Exploration Expertise
The company possesses deep geological knowledge and exploration capabilities, leading to successful discovery and development of new reserves. This fuels long-term production growth.
INVESTMENT RISKS
↓Geopolitical Instability
APA's international operations expose it to risks from political instability, conflict, and changes in foreign government policies. These factors can disrupt supply chains and operations.
↓Technological Obsolescence
The oil and gas industry is subject to technological advancements. Failure to adopt new, more efficient extraction or processing technologies could lead to competitive disadvantages.
↓Debt and Financial Leverage
While not explicitly detailed, significant debt levels can increase financial risk, especially during periods of low commodity prices or increased capital expenditures.
Base case
APA base case PE valuation
A base case PE valuation for APA estimates a fair value of about $44.55 per share, against a current price of $43.39. The model assumes -0.2% annual earnings growth, a 9.13x target PE multiple, and a 10% discount rate.
Intrinsic Value
$44.55
Margin of safety
+2.6%
Expected annual return
+0.5%
Base case assumptions: -0.2% annual earnings growth, 9.13x target PE, 10% discount rate, 5 year projection. Data as of 2026-08-21.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the APA PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for APA Corporation respond.
Open PE Calculator for APACompany Overview
APA Corporation operates in the upstream segment of the oil and natural gas industry, utilizing its various subsidiaries to explore for, develop, and produce hydrocarbon assets. The company maintains significant operational presences in the United States, Egypt, and the United Kingdom, while also conducting exploration activities offshore Suriname. Furthermore, APA Corporation manages critical gathering, processing, and transmission infrastructure within West Texas and holds ownership interests in four major pipelines connecting the Permian Basin to the Gulf Coast. Established in 1954, the company is headquartered in Houston, Texas.
Financial Metrics — APA PE Stock Valuation Data
PE Ratio (TTM)
9.2x
PEG Ratio
0.16
Earnings Yield
10.95%
ROE (TTM)
26.3%
Revenue/Share (TTM)
$25.02
Dividend Yield
2.30%
Debt/Equity
0.55x
Frequently Asked Questions
What is the PE ratio of APA?
The trailing twelve-month PE ratio of APA reflects how much investors pay per dollar of APA Corporation's earnings. This metric is most useful when compared to Oil & Gas Exploration & Production peers and the company's own historical range.
Is APA overvalued based on PE ratio?
APA's PE of 9.2x combined with a PEG ratio of 0.16 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Oil & Gas Exploration & Production, a DCF analysis may be more appropriate.
How do I value APA stock using PE ratio?
To value APA Corporation using PE: (1) Compare the current PE (9.2x) against the Oil & Gas Exploration & Production median to assess relative pricing, (2) check the PEG ratio (0.16) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of APA?
APA's PEG ratio is 0.16, calculated by dividing the PE ratio (9.2x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for APA stock valuation?
PE ratio gives a quick relative read — how APA is priced versus Oil & Gas Exploration & Production peers. DCF provides an absolute value based on projected free cash flows. For APA, with a strong ROE of 26.3%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See APA DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Energy valuationsP/E and DCF value APA with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.