For Immediate Release
Chicago, IL – April 15, 2026 – Stocks in this week’s article are Matador Resources Co. MTDR, Pampa Energia S.A. PAM, Occidental Petroleum Corp. OXY, First American Financial Corp. FAF and AXIS Capital Holdings Ltd. AXS.
5 Value Stocks with Impressive EV-to-EBITDA Ratios to Scoop Up
The price-to-earnings (P/E) ratio is widely regarded as a yardstick for assessing a stock’s fair value. It is commonly used by investors to identify attractively priced stocks. However, despite its popularity, this valuation metric has notable shortcomings.
While P/E remains the most widely used equity valuation ratio, a more comprehensive metric called EV-to-EBITDA often provides a more accurate assessment of a company’s value. Frequently considered a better alternative to P/E, this ratio delivers a clearer view of a firm’s valuation and earnings-generating potential.
Matador Resources Co., Pampa Energia S.A., Occidental Petroleum Corp., First American Financial Corp. and AXIS Capital Holdings Ltd. are some stocks with attractive EV-to-EBITDA ratios.
EV-to-EBITDA Is a Better Approach, Here’s Why
EV-to-EBITDA is essentially the enterprise value (EV) of a stock divided by its earnings before interest, taxes, depreciation and amortization (EBITDA). EV is the sum of a company’s market capitalization, its debt and preferred stock minus cash and cash equivalents. EBITDA, the other component of the multiple, gives a better idea of a company’s profitability as it removes the impact of non-cash expenses like depreciation and amortization that reduce net earnings. It is also often used as a proxy for cash flows.
Just like P/E, the lower the EV-to-EBITDA ratio, the more attractive it is. A low EV-to-EBITDA ratio could signal that a stock is potentially undervalued. EV-to-EBITDA takes into account the debt on a company’s balance sheet, which the P/E ratio does not. For this reason, EV-to-EBITDA is generally used to value potential acquisition targets as it shows the amount of debt the acquirer has to assume. Stocks boasting a low EV-to-EBITDA multiple could be seen as attractive takeover candidates.
Another shortcoming of P/E is that it can’t be used to value a loss-making firm. A company’s earnings are also subject to accounting estimates and management manipulation. On the other hand, EV-to-EBITDA is difficult to manipulate and can also be used to value loss-making but EBITDA-positive companies. EV-to-EBITDA is also a useful tool in measuring the value of firms that are highly leveraged and have a high degree of depreciation. It can be used to compare companies with different levels of debt.
But EV-to-EBITDA has its shortcomings, too. The ratio varies across industries (a high-growth industry typically has a higher multiple and vice versa). It is usually not appropriate when comparing stocks in different industries, given their diverse capital requirements.
A strategy solely based on EV-to-EBITDA might not yield the desired results. However, you can club it with the other major ratios in your stock-investing toolbox, such as price-to-book (P/B), P/E and price-to-sales (P/S) to screen value stocks.
Here are our five picks out of the 18 stocks that passed the screen:
Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. This Zacks Rank #1 stock has a Value Score of A.
Matador Resources has an expected year-over-year earnings growth rate of 312% for 2026. The Zacks Consensus Estimate for MTDR’s 2026 earnings has moved up 73.3% over the past 60 days.
Pampa Energia is a leading independent energy-integrated company in Argentina. This Zacks Rank #1 stock has a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
Pampa Energia has an expected year-over-year earnings growth rate of 24.1% for 2026. The consensus estimate for PAM's 2026 earnings has been revised 0.7% upward over the past 60 days.
Occidental Petroleum is an integrated oil and gas company with significant exploration and production exposure. This Zacks Rank #1 stock has a Value Score of B.
Occidental Petroleum has an expected year-over-year earnings growth rate of 40.3% for 2026. The Zacks Consensus Estimate for OXY's 2026 earnings has been revised 377% upward over the past 60 days.
First American Financial serves homebuyers and sellers, real estate professionals, loan originators and servicers, commercial property professionals, homebuilders and others involved in residential and commercial property transactions with products and services specific to their needs. This Zacks Rank #2 stock has a Value Score of A.
First American Financial has an expected earnings growth rate of 5.5% for 2026. The Zacks Consensus Estimate for FAF’s 2026 earnings has been revised 3.4% upward over the past 60 days.
AXIS Capital provides a broad range of specialty insurance and reinsurance solutions to its clients on a worldwide basis. This Zacks Rank #2 stock has a Value Score of B.
AXIS Capital has an expected year-over-year earnings growth rate of 2.9% for 2026. The consensus estimate for AXS’s 2026 earnings has moved up 3.3% over the past 60 days.
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Occidental Petroleum Corporation (OXY): Free Stock Analysis Report
Axis Capital Holdings Limited (AXS): Free Stock Analysis Report
Pampa Energia S.A. (PAM): Free Stock Analysis Report
First American Financial Corporation (FAF): Free Stock Analysis Report
Matador Resources Company (MTDR): Free Stock Analysis Report
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