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






Finance and Credit

Applying asset-and equity-based multipliers in the valuation of oil and gas corporations

Vol. 27, Iss. 1, JANUARY 2021

Received: 5 November 2020

Received in revised form: 19 November 2020

Accepted: 3 December 2020

Available online: 28 January 2021

Subject Heading: BUSINESS VALUE

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

Pages: 129–167


Oleg V. SHIMKO Institute of Economics of Russian Academy of Sciences (IE RAS), Moscow, Russian Federation


Subject. This article explores the ratios of the company's market capitalization and value to the balance sheet value of assets and equity of the twenty five leading public oil and gas companies between 2008 and 2018.
Objectives. The article aims to identify key trends in the changes in market capitalization and value ratios of the company to the balance sheet value of assets and equity of the largest public oil and gas companies, identify the factors that have caused these changes, and establish the applicability of these multipliers to estimate the value of the business within the oil and gas industry.
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 establishes that the multipliers studied are acceptable for assessing the value of oil and gas companies, but it is preferable to use asset-based ratios.
Conclusions and Relevance. The overall decline in profitability and the increase in debt load in the stock exchange sector of the global oil and gas industry should be taken into account when using multipliers based on assets and shareholder capital in the assessment of the value of oil and gas corporations through a comparative approach. The results of the study can be used to assess the possible value of oil and gas assets as part of a comparative approach and develop measures to increase the market capitalization of public oil and gas companies.

Keywords: assets, equity, valuation, comparative approach, oil and gas industry


  1. 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.)
  2. Usmanova A.S., Nesterenko E.A., Taraskin D.S. [Valuation of public companies in Russia by business sector]. Vestnik Saratovskogo gosudarstvennogo sotsial'no-ekonomicheskogo universiteta, 2020, no. 2, pp. 103–107. URL: Link (In Russ.)
  3. 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.)
  4. 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
  5. 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.)
  6. 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.)
  7. 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.)
  8. Skavysh I.A. [The effectiveness of using industry-specific multipliers versus universal multipliers]. Finansovoe pravo i upravlenie, 2017, no. 1, pp. 1–10. (In Russ.) URL: Link
  9. Ivko D.G. [Assessing the value of Russian companies: risks of using the market multiples method]. Finansy i upravlenie, 2018, no. 1, pp. 8–22. (In Russ.) URL: Link
  10. 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.)
  11. 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.)
  12. 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.)
  13. 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.)
  14. 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.)
  15. 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.)
  16. 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.)
  17. Yurlov F.F., Kornilov D.A., Kornilova E.V., Plekhanova A.F. [Comparative evaluation of efficiency of large companies oil and gas sector]. Vestnik NGIEI = Bulletin NGIEI, 2020, no. 7, pp. 83–92. URL: Link (In Russ.)
  18. 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.)

View all articles of issue


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

Journal current issue

Vol. 27, Iss. 2
February 2021