Apache Corporation explores, develops, and produces natural gas, crude oil, and natural gas liquids in the Permian Basin, the Anadarko basin in western Oklahoma, and the Texas Panhandle, Gulf Coast areas of the United States, as well as in Western Canada. The company was founded in 1954 and is based in Houston, Texas.
APA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Apache Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Apache Corp ranked in the 16th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Apache Corp, consider:
Interest coverage, a measure of earnings relative to interest payments, is -5.15; that's higher than merely 14.83% of US stocks in the Energy sector that have positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 5.81 years, is -0.21% -- higher than merely 9.67% of stocks in our DCF forecasting set.
Apache Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as APA, try ERF, SLB, HAL, MRO, and PARR.