Analysts provided wide valuation estimates for Saudi Aramco, ranging between $1.2 trillion and $2.3 trillion, fund managers who have seen research notes said, as the oil giant kick-started its initial public offering (IPO) on the local bourse.
Bank analysts started showing IPO research to fund managers soon after Aramco, the world’s most profitable company, on Sunday announced its intention to float on the domestic bourse in what could be the world’s biggest listing.
The research reports highlight the challenges faced in hitting Saudi Crown Prince Mohammed bin Salman’s initial valuation target of $2 trillion for the world’s largest oil producer, with some banks having said it could be about $1.5 trillion.
Bank of America (BOFA) Merrill Lynch estimates Aramco’s valuation could range from a low of $1.2 trillion to a high of $2.3 trillion, while EFG Hermes has an equity valuation of $1.55 trillion to $2.1 trillion, two fund managers who have seen the research reports told Reuters.
BOFA Merrill’s research is based on the discounted-cash-flow model, a valuation methodology that uses future cash flow, according to one fund manager who saw the research.
Credit Suisse’s research also has similar wide ranges, the fund manager said.
“These ranges are always wide as research analysts want to cover both low end and high end so you want to show sensitivity of assumptions,” one analyst said.
EFG Hermes research implies a 2020 estimated enterprise value to EBITDA ratio of 6.9 times to 9.4 times, a price-to earnings ratio of 14.5 times to 19.5 times, and a dividend yield of 3.9 per cent to 5.3pc.
Aramco’s long-awaited announcement on Sunday did not disclose the number of shares to be sold, pricing or the date for a launch.
Very good website you have here but I was curious if you knew
of any user discussion forums that cover the same topics discussed here?
I’d really love to be a part of online community where I can get opinions from other knowledgeable people that
share the same interest. If you have any suggestions,
please let me know. Thank you!
Its fantastic as your other articles :D, regards for putting up.
I got what you mean, appreciate it for putting up. Woh I am lucky to find this website
through google.
Heya i’m for the first time here. I came across this board
and I find It really useful & it helped me out a
lot. I hope to give something back and aid others like you helped me.
What’s Taking place i am new to this, I stumbled upon this I have discovered It absolutely useful and it has helped me out loads.
I hope to give a contribution & assist different users like its helped me.
Great job.
It’s wonderful that you are getting ideas from this article
as well as from our dialogue made at this place.
As the admin of this web page is working, no hesitation very soon it will be famous, due to its feature contents.
No matter if some one searches for his essential thing, therefore he/she
desires to be available that in detail, therefore that
thing is maintained over here.
Awesome post.
Wonderful beat ! I wish to apprentice while you amend your
site, how could i subscribe for a weblog website? The account helped me a appropriate deal.
I were a little bit familiar of this your broadcast offered vivid clear concept
Very quickly this site will be famous among all blogging and site-building people, due to it’s nice posts