Here’s Why We Think Shell’s Stock Price Is Worth $53 Per Share
Royal Dutch Shell (NYSE:RDSA), one of the world’s largest integrated energy companies, has had a hard time coping with the ongoing commodity downturn. While the company’s stock has somewhat recovered from its all-time lows of under $40 per share in February of this year, it is currently trading almost 40% lower compared to its price in 2014, i.e. at the peak of the commodity cycle. As the commodity markets remain volatile, it is difficult to estimate the future prices of commodities with certainty. However, based on the current market trends and the outlook presented by the large oil and gas companies, we expect the commodity prices to continue to remain depressed over the next couple of quarters. Consequently, we have revised our price estimate for Shell to $53 per share. Below, we present the key factors driving this downward revision.
Have more questions about Royal Dutch Shell (NYSE:RDSA)? See the links below:
- How Much Value Does Shell’s Upstream Operations Contribute To Its Total Equity Value?
- How Will Shell’s Upstream Production Change In The Next Five Years?
- Shell’s 2Q’16 Earnings Expected To Suffer As Commodity Prices Remain Depressed
- What Is Shell’s Strategy To Combat The Commodity Downturn Over The Next Two Years?
- How Will Shell’s Revenue Be Impacted If Crude Oil Prices Average At $50 Per Barrel Till 2018?
- How Will Shell’s Revenue Move If Crude Oil Prices Rebound To $100 Per Barrel By 2018?
- Why Are Shell’s Upstream Operations More Important Than Its Downstream Operations?
- How Much Value Will The BG Group Acquisition Add To Royal Dutch Shell?
- By What Percentage Can Royal Dutch Shell’s Revenues Grow Over the Next Five Years?
- What’s Royal Dutch Shell’s Revenue & Earnings Breakdown In Terms of Different Products?
- What’s Royal Dutch Shell’s Fundamental Value Based On Expected 2016 Results?
- How Is Royal Dutch Shell’s Revenue & EBITDA Composition Expected To Change in 2016?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Royal Dutch Shell
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