Aramco Fair Value Should Be Between $1.3T - $1.4T: Sanford C. Bernstein

The video discusses the expectations for Aramco's stock price, highlighting a lower valuation estimate compared to the initial pricing. It explores the impact of oil prices on stock valuation, noting that higher oil prices are needed to justify a $2 trillion valuation. Concerns about investor rotation from other global oil majors to Aramco are addressed, with a focus on dividend yields. The video also identifies potential buyers, including retail and institutional investors in Saudi Arabia and the Gulf region, and mentions Aramco's inclusion in the MSCI IEM Index.

What is the estimated fair value of the stock according to the speaker?

• $1.314 trillion

• $2 trillion

• $1.5 trillion

• $1.7 trillion

What oil price per barrel is needed to justify a $2 trillion valuation?

• $75

• $85

• $64

• $60

How does Aramco's dividend yield compare to other global oil majors?

• Exactly 6%

• Around 4.4%

• Lower than 4%

• Higher than 6%

What is the main concern for investors regarding Aramco's market cap?

• It might lead to a rotation from other oil majors.

• It will reduce dividend yields.

• It will decrease the stock price.

• It will increase oil prices.

Who are expected to be the initial buyers of Aramco shares?

• International investors

• American hedge funds

• European institutional investors

• Retail investors in Saudi Arabia