Apple is no longer the most expensive company in the world
28.03.2017 0 Comments
It is considered that Apple is the most valuable Corporation in the world. This is true, judging by stock exchange quotations, its market capitalization is estimated at $730 billion, Its closest rivals — Google (aka Google’s $570) and Microsoft ($503). But how should companies not listed on the stock exchange? Among private companies in competition with Apple may be the only oil giant Saudi Arabia Saudi Aramco. As reported by Meduza, this week it went up dramatically and may cost more than $1 trillion.
That state Saudi Aramco is the largest oil company in the world — has long been known. But to evaluate it adequately for a long time did not work — if the company’s shares are not traded on the stock exchange, it is not accountable according to strict international standards.
After the fall in oil prices several years ago, the budget of Saudi Arabia was formed with huge deficit. To obtain additional funds, local officials have agreed to sell 5% of Saudi Aramco, and the money spent on ridding the country of oil dependence. This has spurred a new wave of discussion of how much it might cost.
Most recently, consultants from Wood Mackenzie has estimated Saudi Aramco in $400 billion With this assessment company from Saudi Arabia would still be the most expensive oil giant in the world (ExxonMobil capitalization now — $330), but inferior to Apple.
To increase the potential value of its oil company, Saudi Arabia 26 Mar changed the taxation industry. Now Saudi Aramco should give to the budget not 85% of its profits, but only 50%. According to the forecasts of another consulting firm, Sanford C. Bernstein, it will increase revenue by 300%. In addition, the profitability of Saudi Aramco for every barrel of oil produced now is comparable with Western companies — and, therefore, capitalization should increase dramatically.
With tax reform, Saudi Aramco is worth more than $1 trillion — Sanford C. Bernstein believes that the valuation of the company varies from $1 to $1.5 trillion. Consequently, Saudi Aramco is now the most valuable company in the world.