Using the industry peer median EV/EBITDA multiple (trailing + forward), APA Corporation (APA) has a fair value of $91.86 based on 9 comparable companies in the Oil & Gas Exploration & Production industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/EBITDA | Forward EV/EBITDA | |
|---|---|---|---|
| APA CorporationAPA | 15,272 | 3.6x | 4.2x |
| ConocoPhillipsCOP | 162,938 | 7.2x | 7.4x |
| EOG Resources, Inc.EOG | 80,098 | 7.5x | 7.1x |
| Occidental Petroleum CorporationOXY | 63,338 | 7.5x | 7.2x |
| Diamondback Energy, Inc.FANG | 57,076 | 10.0x | 10.2x |
| Woodside Energy Group LtdWDS | 46,978 | 5.9x | 5.9x |
| EQT CorporationEQT | 41,845 | 8.4x | 7.9x |
| Texas Pacific Land CorporationTPL | 36,176 | 55.0x | 62.3x |
| Devon Energy CorporationDVN | 31,863 | 5.3x | 5.5x |
| Coterra Energy Inc.CTRA | 27,228 | 6.4x | 2.2x |
| Industry Median | 7.5x | 7.2x | |
| (*) EBITDA | 5,435 | 4,676 | |
| = Enterprise Value | 40,799 | 33,748 | |
| (-) Net Debt | 4,294 | 4,294 | |
| Equity Value | 36,505 | 29,454 | |
| (/) Outstanding shares | 359 | 359 | |
| Fair Price | $102 | $82 | |
This EV/EBITDA relative valuation uses the industry peer median Enterprise Value to EBITDA ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) EV/EBITDA multiples are computed independently.
The industry median EV/EBITDA is applied to the company's EBITDA to produce an enterprise value. Net debt (total debt minus cash) is subtracted to arrive at equity value, which is divided by shares outstanding for fair price per share. The selected fair value is the average of the trailing and forward legs.