Is APA Corp. overvalued or undervalued?

As of 8 May 2025, the valuation grade for APA Corp. has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a P/E ratio of 3, an EV to EBITDA of 2.10, and a ROE of 46.20%.
In comparison to its peers, APA Corp. stands out with a significantly lower P/E ratio than Chesapeake Energy Corp. at 31.99 and Coterra Energy, Inc. at 15.78, both of which are considered more expensive. Additionally, APA's EV to EBITDA ratio of 2.10 is more favorable compared to the industry averages, suggesting that it offers better value relative to its earnings potential. Despite recent stock performance lagging behind the S&P 500, with a YTD return of -20.36% compared to 2.44% for the index, the current valuation metrics position APA Corp. as an attractive investment opportunity.