+7 495 989 9610, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
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

https://doi.org/10.24891/fc.26.12.2765

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

https://orcid.org/0000-0002-0779-7097

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

References:

  1. Kozlova A.S., Odinokova K.A., Taraskin D.S. [Most popular approaches to valuation of public companies]. Vestnik Saratovskogo gosudarstvennogo sotsial'no-ekonomicheskogo universiteta = Bulletin of Saratov State Socio-Economic University, 2019, no. 1, pp. 105–111. URL: Link (In Russ.)
  2. Kokin A.S., Oskolkov I.M., Syzganova A.A. [Comparative approach to estimation of cost of stocks of the oil and gas companies of Russia on the basis of the fundamental analysis]. Ekonomika: vchera, segodnya, zavtra = Economics: Yesterday,Today and Tomorrow, 2019, vol. 9, no. 1-1, pp. 241–258. URL: Link (In Russ.)
  3. Khasanov R.Kh., Lavrinenko A.O. [Valuation of the Russian stock market]. Finansovaya analitika: problemy i resheniya = Financial Analytics: Science and Experience, 2017, vol. 10, iss. 3, pp. 311–330. (In Russ.) URL: Link
  4. Minasyan V.B. [Assessment of risks arising from the use of multiplier technology to assess the shares]. Finansy: teoriya i praktika = Finance: Theory and Practice, 2018, vol. 22, no. 3, pp. 124–135. URL: Link (In Russ.)
  5. Ivko D.G. [Peculiarities of assessing Russian companies' value by using the method of market multipliers]. Finansy i upravlenie = Finance and Management, 2017, no. 1, pp. 34–46. URL: Link (In Russ.)
  6. Minasyan V.B., Ivko D.G. [Model risk analysis of multiplier technology applied at stock valuation of Russian companies]. Finansy: teoriya i praktika = Finance: Theory and Practice, 2019, vol. 23, no. 6, pp. 91–116. URL: Link (In Russ.)
  7. Khalikova M.A., Belai I.E., Galimzyanov R.N. [The evaluation of a controlling stake of the oil company]. Internet-zhurnal Naukovedenie, 2016, vol. 8, no. 3. (In Russ.) URL: Link
  8. Nazarova V.V., Shevyakina O.R. [Determination of an optimum premium paid in M&A transactions in oil and gas section]. Korporativnye finansy = Journal of Corporate Finance Research, 2015, vol. 9, no. 4, pp. 5–30. URL: Link (In Russ.)
  9. Garifullin F.F. [Synergistic effect as basis for its decision to hold the mergers and acquisitions]. Vestnik Universiteta (Gosudarstvennyi universitet upravleniya), 2015, no. 2, pp. 156–159. URL: Link (In Russ.)
  10. Lipatnikov V.S., Kirsanova K.A. [Assessment of the impact of the adverse economic geopolitical environment on the worth of Russian oil and gas companies]. Upravlencheskie nauki = Management Sciences, 2018, vol. 8, no. 2, pp. 30–43. URL: Link (In Russ.)
  11. Chernenko V.A., Burov A.N. [Russian and global capital structure approach: enterprise value impact]. Izvestiâ Sankt-Peterburgskogo gosudarstvennogo èkonomičeskogo universiteta, 2019, no. 1, pp. 38–42. URL: Link (In Russ.)
  12. Basiladze G.R. [Comparative analysis of investment appeal of PJSC “Lukoil”, PJSC “Rosneft”, PJSC “Gazprom”]. Gumanitarnye, sotsial'no-ekonomicheskie i obshchestvennye nauki = Humanities, Social-Economic and Social Sciences, 2017, no. 1, pp. 145–147. URL: Link (In Russ.)
  13. Tebekin A.V., Bozrov A.R. [Comparative assessment of efficiency of functioning and assessment of market prospects of development of the largest oil and gas companies]. Transportnoe delo Rossii = Transport Business of Russia, 2017, no. 5, pp. 3–6. URL: Link (In Russ.)
  14. Vasil'eva E.V., Petrova S.B. [Strategic analysis of factors affecting the development of oil and gas corporations in Russia]. Vestnik Ekaterininskogo instituta = Bulletin of Catherine the Great National Institute, 2015, no. 2, pp. 8–14. (In Russ.)
  15. Ponomareva S.V., Zheleznova I.V. [Features of share buybacks in Russia]. Vestnik Permskogo natsional'nogo issledovatel'skogo politekhnicheskogo universiteta. Sotsial'no-ekonomicheskie nauki = PNRPU Sociology and Economics Bulletin, 2017, no. 2, pp. 165–178. URL: Link (In Russ.)
  16. Zheleznova I.V. [The stock price dynamic model during share buybacks]. Vestnik Permskogo natsional'nogo issledovatel'skogo politekhnicheskogo universiteta. Sotsial'no-ekonomicheskie nauki = PNRPU Sociology and Economics Bulletin, 2017, no. 3, pp. 223–240. URL: Link (In Russ.)
  17. Timofeev D.V. [Modeling of a sovereign risk premium in emerging capital markets]. Korporativnye finansy = Corporate Finance, 2015, vol. 9, no. 2, pp. 54–75. URL: Link (In Russ.)
  18. Bessonova A.A., Belousova N.D. [Accommodation of free cash flows of physical persons: deposits and securities]. Azimut nauchnykh issledovanii: ekonomika i upravlenie = Azimuth of Scientific Research: Economics and Administration, 2018, vol. 7, no. 2, pp. 48–51. URL: Link (In Russ.)
  19. Kozlova A.S., Taraskin D.S. [Methodology for forming securities portfolio based on risk, yield and fair value of the company]. Vestnik Saratovskogo gosudarstvennogo sotsial'no-ekonomicheskogo universiteta = Bulletin of Saratov State Socio-Economic University, 2018, no. 1, pp. 104–109. URL: Link (In Russ.)
  20. Gurvits Yu.B. [The development of strategy for stock portfolio optimization in oil and gas sector]. Vestnik Moskovskogo universiteta. Seriya 6: Ekonomika = Moscow University Economics Bulletin, 2017, no. 2, pp. 65–89. URL: Link (In Russ.)
  21. Shimko O.V. Analiz rezul'tatov finansovo-khozyaistvennoi deyatel'nosti vedushchikh publichnykh korporatsii neftegazovoi otrasli posle mirovogo finansovogo krizisa [An analysis of the results of financial and economic activities of leading public corporations in the oil and gas industry after the global financial crisis]. Moscow, Nauka Publ., 2019, 339 p.

View all articles of issue

 

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 26, Iss. 12
December 2020

Archive