Aramco Valuation Comes Under Scrutiny

Saudi Crown Prince Mohammed bin Salman says Saudi Aramco
should be valued at $2 trillion for its initial public offering,
but its true value will only be known when the company releases its
financials next year. Because Aramco’s reserves are a staggering
266 billion barrels, the valuation of each of those barrels is
particularly important. If, for example, each of those barrels get
a $7 or $8 valuation, the $2 trillion valuation seems possible. But
that’s not all what IPO valuations are based on. Investors use many
of other metrics—financial…

Saudi Crown Prince Mohammed bin Salman says Saudi Aramco
should be valued at $2 trillion for its initial public offering,
but its true value will only be known when the company releases its
financials next year. Because Aramco’s reserves are a staggering
266 billion barrels, the valuation of each of those barrels is
particularly important. If, for example, each of those barrels get
a $7 or $8 valuation, the $2 trillion valuation seems possible. But
that’s not all what IPO valuations are based on. Investors use many
of other metrics—financial…