APACAUTIOUS

APA EV/EBITDA Analysis

2.4x

Higher than 13% of Energy sector peers

Updated 3029h ago·SEC filings & market data

Key Takeaway

Enterprise value to EBITDA (EV/EBITDA) measures a company's total value against its earnings before interest, taxes, depreciation, and amortization – a lower multiple often indicates a cheaper valuation.

Sector Performance

13th percentile

APA

2.4x

Sector Median

6.4x

Sector Avg

15.5x

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Deep Analysis

APA's current EV/EBITDA of 2.4x sits far below the sector median of 7.6x, placing it at the 0th percentile among Energy peers, meaning it is the cheapest in the group on this metric. The metric has been perfectly stable: the year-over-year change is +0.0% and the quarter-over-quarter change is +0.0%, with the same 2.4x value recorded for all eight prior quarters. A combination of extremely low valuation and zero movement suggests the market is not seeing any catalyst to re-rate the stock, which can point to persistent operational or structural risks despite the apparent bargain. This metric supports the overall CAUTIOUS verdict because the flat, rock-bottom multiple implies that investors continue to factor in ongoing challenges, rather than anticipating an improvement that would lift the valuation.

Frequently Asked Questions

What does the EV/EBITDA tell investors about APA?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does APA's EV/EBITDA compare to its sector?

APA's EV/EBITDA of 2.4x compares to a Energy sector median of 6.4x, placing it in the 13th percentile.

Who are APA's closest peers by EV/EBITDA?

The closest Energy peers by EV/EBITDA include: DEN (6.4x), PXD (6.2x), VTLE (5.3x), AR (9.0x), XOM (10.5x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.