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ИД «Финансы и кредит»






Finance and Credit

Analyzing the market valuations of the world's leading public oil and gas corporations

Vol. 26, Iss. 12, DECEMBER 2020

Received: 10 September 2020

Received in revised form: 19 October 2020

Accepted: 2 November 2020

Available online: 25 December 2020

Subject Heading: BUSINESS VALUE

JEL Classification: G32, L25, L71, M41, O12

Pages: 2765–2789


Shimko O.V. Institute of Economics of Russian Academy of Sciences (IE RAS), Moscow, Russian Federation


Subject. This article explores the market valuation ratios of the twenty five leading public oil and gas companies between 2006 and 2018.
Objectives. The article aims to identify key trends in the changes in market valuations of the largest public oil and gas companies, and identify the factors that have caused these changes.
Methods. For the study, I used comparative, and financial and economic analyses, and generalization of materials of the companies' consolidated financial statements.
Results. The article shows certain changes in the main indicators of market valuation of the leading public oil and gas companies and identifies the main factors that contributed to these changes. It establishes that the most significant for comparison and valuation are ratios based on balance sheet values of assets and equity, and EBITDA, DACF and net income ratios are appropriate as auxiliary ratios. The article says that the exchange segment of the industry has increased the debt load, so instead of market capitalization as a component of the coefficients of this group, it is advisable to apply the company's value indicator.
Conclusions and Relevance. The article concludes that the market sentiments towards the stock market segment of the global oil and gas industry are getting impaired. This is quite natural against the background of falling profitability of most leading companies. The results of the study can be useful in evaluating, forecasting and developing measures to increase the market capitalization and value of public oil and gas companies.

Keywords: market capitalization, company value, assets, shareholders' equity, net sales


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Vol. 26, Iss. 12
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