| Anadarko Petroleum’s Valuation Is In-Line with Its Competitors’ | |
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Anadarko Petroleum Seeks Cost Efficiencies amid Low Energy Prices (Continued from Prior Part) Anadarko’s relative valuation
In the previous part of the series, we compared Anadarko Petroleum’s (APC) EV/EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple against its own historical levels. In this part, we’ll look at the company’s valuation against the multiples of its peers.
APC’s forward EV/EBITDA
A peer group comparison shows that Anadarko’s forward EV/EBITDA multiple of ~8.5x is higher than some of its peers’ multiples. Apache (APA) is currently trading at a forward EV/EBITDA multiple of ~6.2x. Hess (HES) is trading at a multiple of ~6.7x. Pioneer Natural Resources (PXD) is trading at a higher EV/EBITDA multiple of ~12x.
When compared to the industry average, APC appears to be in-line with its peer average of ~8.6x. Together, these companies make up ~5.8% of the Vanguard Energy ETF (VDE).
Anadarko’s returns and dividends
In terms of returns, APC offers the worst returns when its profitability is scaled by its shareholder equity. This calculation is called ROE (return on equity). APC’s ROE stands at roughly -34%, which is a result of the company’s negative net earnings. Among the company’s peers, PXD has the highest ROE at ~10%.
In terms of more direct returns to shareholders, APC offers a dividend yield of ~2.5%. APA has the highest dividend yield at 2.6%.
Continue to Next Part Browse this series on Market Realist:
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Anadarko
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CODE : APC |
ISIN : US0325111070 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Anadarko is a exploration company based in Canada. Anadarko is listed in Germany and in United States of America. Its market capitalisation is US$ 38.6 billions as of today (€ 34.5 billions). Its stock quote reached its lowest recent point on May 12, 1995 at US$ 10.00, and its highest recent level on May 23, 2014 at US$ 99.93. Anadarko has 531 000 000 shares outstanding. |