Oil & Gas Exploration & Production · NASDAQ
Current Price
$40.32
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on APA Corporation with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
APA Corporation, through its subsidiaries, explores for, develops, and produces oil and gas properties. It has operations in the United States, Egypt, and the United Kingdom, as well as has exploration activities offshore Suriname. The company also operates gathering, processing, and transmission assets in West Texas, as well as holds ownership in four Permian-to-Gulf Coast pipelines. APA Corporation was founded in 1954 and is based in Houston, Texas.
Earnings Yield
10.02%
ROE (TTM)
24.5%
Based on trailing twelve-month data, APA has earnings per share of N/A and trades at a PE ratio of N/A. These are key inputs for stock valuation using the PE ratio method.
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.
Whether APA is overvalued depends on comparing its PE ratio to Oil & Gas Exploration & Production peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
To value APA Corporation using PE: (1) Compare the current PE against the Oil & Gas Exploration & Production median to assess relative pricing, (2) check the PEG ratio 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.
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
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 24.5%, 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.
