Saudi Arabia's Oil Wealth Is About to Get a Reality Check
by Javier Blas
and Wael Mahdi
February 23, 2017, 12:00 PM EST February 24, 2017, 12:30 AM EST
Wood Mackenzie said to estimate valuation at $400 billion
Aramco IPO underpins Saudi Arabia’s economic overhaul
Saudi Authorities Say Aramco Is Worth More Than $2T
Saudi Arabia has said oil giant Saudi Aramco is worth more than $2 trillion, enough to consume Apple Inc. twice, and still have room for Google parent Alphabet Inc.
The kingdom may have to settle for less. A lot less.
Industry executives, analysts and investors told Bloomberg their analysis -- based on oil reserves and cash flow projections under different tax scenarios -- suggests Aramco is worth no more than half, and maybe as little as a fifth, of that amount. This means Saudi Arabia would earn a fraction of the $100 billion implied by its valuation if it sells 5 percent to the public in 2018, as planned.
https://www.bloomberg.com/news/articles/2017-02-23/saudi-arabia-2-trillion-aramco-vision-runs-into-market-reality