These sources revealed that officials working on Aramco’s offering have not been able to draft a model matching the figure quoted by Saudi’s deputy crown prince, Mohammed bin Salman.
Even accounting for a more favorable tax rate, the highest valuation that employees were able to come up with was about $1.5 trillion, the Journal said, citing internal documents it reviewed and people familiar with the matter.
If correct, that would mean the initial $2 trillion valuation figure is off by a little more than the combined market valuation of Amazon and Netflix. Alternatively, the $500 billion discrepancy is a little less than the market capitalization of Microsoft.
Saudi Aramco did not immediately respond to a request for comment. (Source credit – CNBC)