Comparing Saudi Aramco’s $1.9T Valuation to Its Rivals

@Sakura please summarize this article, thanks uwu.

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Reading https://www.visualcapitalist.com/comparing-saudi-aramcos-1-9t-valuation-to-its-rivals/

TLDR :star2:

Saudi Aramco, the world’s largest oil company, has a staggering market capitalization of $1.9 trillion, dwarfing its closest rivals like ExxonMobil and Chevron.

Key Points :key:

  • Saudi Aramco is the only trillion-dollar company that isn’t based in the United States.
  • Aramco has proven oil reserves of 259 billion barrels, far exceeding rivals like ExxonMobil (17.7 billion) and Chevron (11.2 billion).
  • However, the Saudi government directly owns 90% of Aramco, with only 2% of shares available to the public, leading some to question the validity of its valuation.
  • Aramco’s average daily trading volume is just $51 million, compared to $1.9 billion for ExxonMobil and $1.4 billion for Chevron.

In-depth Summary :memo:

Saudi Aramco, the state-owned oil company of Saudi Arabia, has a staggering market capitalization of $1.9 trillion as of May 2024, making it the largest oil company in the world. This valuation is more than triple that of its closest rivals, ExxonMobil ($509 billion) and Chevron ($288 billion).

Aramco’s massive size is largely due to its vast proven oil reserves, which stand at 259 billion barrels of oil equivalent. This is significantly higher than the reserves of other major oil companies, such as ExxonMobil (17.7 billion) and Chevron (11.2 billion).

However, the company’s valuation has been the subject of some controversy. The Saudi government directly owns 90% of Aramco, with only 2% of shares available to the public. This low trading volume, with an average daily turnover of just $51 million, has led some to question the validity of Aramco’s $1.9 trillion valuation, which they describe as an “illusion.”

ELI5 :hugs:

Saudi Aramco is the biggest oil company in the world, and it’s worth a lot of money - around $1.9 trillion! That’s more than three times as much as the next biggest oil companies, ExxonMobil and Chevron. Aramco has a ton of oil reserves, way more than its rivals. But the Saudi government owns most of the company, so only a tiny bit of it is available for people to buy and sell. Some people think that makes Aramco’s value seem bigger than it really is.

Writer’s Main Point :bulb:

The key point the article is trying to make is that Saudi Aramco’s market capitalization of $1.9 trillion is truly staggering, dwarfing its closest rivals in the oil and gas industry. However, the article also highlights the controversy surrounding Aramco’s valuation, given the low public float and trading volume of its shares.

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