Is APA Corp. overvalued or undervalued?

As of 6 August 2025, the valuation grade for APA Corp. has moved from attractive to very attractive, indicating a stronger investment appeal. The company appears undervalued, particularly when considering its P/E ratio of 3, which is significantly lower than its peers like Chord Energy Corp. with a P/E of 31.09 and Matador Resources Co. at 6.13. Additionally, APA Corp. has an EV to EBITDA ratio of 2.10 and a Price to Book Value of 1.37, further supporting its undervaluation relative to the industry.
In terms of performance, APA Corp. has shown a 1-week return of 4.00% compared to the S&P 500's 1.05%, and a 1-month return of 17.10% versus the S&P 500's 2.33%. However, over the longer term, the stock has underperformed with a 3-year return of -40.93% compared to the S&P 500's 70.41%. Overall, the combination of low valuation ratios and recent performance trends suggests that APA Corp. is an attractive investment opportunity.