March 4, 2010
Finance professor Sheridan Titman recently discussed (and polled his readers) on the Financial Time's valuation of Saudi Aramco on his Energy Insights blog. The FT's rough estimate of the company's worth came to $7 trillion, which would make it more than 20 times as valuable as ExxonMobil, the largest U.S. company, and about one-third the size of the entire U.S. stock market.
"This is incredible--the question is whether or not it is true," writes Titman, who then proposes his own valuation (and methodology), which involved discounting the firm’s future cash flows back to the present. Read "More Thoughts on the Value of Saudi Aramco."