Saudi Aramco Base Oil Company JSC
SAU:2223
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EV/OCF
Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.
Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.
Valuation Scenarios
If EV/OCF returns to its 3-Year Average (7), the stock would be worth ﷼64.65 (50% downside from current price).
| Scenario | EV/OCF Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 14.1 | ﷼129.6 |
0%
|
| 3-Year Average | 7 | ﷼64.65 |
-50%
|
| 5-Year Average | 7 | ﷼64.65 |
-50%
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| Industry Average | 13.5 | ﷼124.29 |
-4%
|
| Country Average | 17.7 | ﷼162.88 |
+26%
|
Forward EV/OCF
Today’s price vs future operating cash flow
Peer Comparison
| Market Cap | EV/OCF | P/E | ||||
|---|---|---|---|---|---|---|
| SA |
S
|
Saudi Aramco Base Oil Company JSC
SAU:2223
|
21.8B SAR | 14.1 | 16.9 | |
| SA |
|
Saudi Basic Industries Corporation SJSC
SAU:2010
|
228.3B SAR | 13.3 | -8.8 | |
| ID |
|
Chandra Asri Pacific PT Tbk
OTC:PTPIF
|
45.6B USD | 135.6 | 41.8 | |
| ID |
|
Chandra Asri Petrochemical Tbk PT
IDX:TPIA
|
534.2T IDR | 95.5 | 28.9 | |
| US |
|
Dow Inc
NYSE:DOW
|
27.8B USD | 40.7 | -10.6 | |
| CN |
|
Hengli Petrochemical Co Ltd
SSE:600346
|
171.4B CNY | 8.9 | 24.2 | |
| UK |
|
LyondellBasell Industries NV
NYSE:LYB
|
23.2B USD | 14.2 | -30.8 | |
| TW |
|
Nan Ya Plastics Corp
TWSE:1303
|
709B TWD | 89.9 | 156.9 | |
| KR |
|
LG Chem Ltd
KRX:051910
|
30.7T KRW | 5.5 | -16.9 | |
| CN |
|
Rongsheng Petrochemical Co Ltd
SZSE:002493
|
120.3B CNY | 7 | 163.4 | |
| CN |
G
|
Guangzhou Tinci Materials Technology Co Ltd
SZSE:002709
|
106B CNY | 89.3 | 77.8 |
Market Distribution
| Min | 1.1 |
| 30th Percentile | 12.3 |
| Median | 17.7 |
| 70th Percentile | 26.3 |
| Max | 1 696.8 |
Other Multiples
Saudi Aramco Base Oil Company JSC
Glance View
In the heart of the oil-rich landscape of Saudi Arabia, the Saudi Aramco Base Oil Company JSC—or Luberef, as it is commonly known—operates as a key player in the global energy sector. This enterprise, a subsidiary of the petroleum powerhouse Saudi Aramco, epitomizes the transformation of crude oil into valuable base oils critical for the lubrication of machinery worldwide. Through a meticulous refining process, crude oil is distilled and purified into base oil stocks. These products are indispensable for manufacturing lubricants that minimize friction in engines and industrial equipment—essentially keeping the commercial and transportation sectors running smoothly. Luberef's operations are strategically spread across major facilities, with its Refinery in Yanbu and Jeddah representing state-of-the-art centers that elevate its production capabilities. Profit-generation for Luberef hinges on a finely-tuned strategy that combines efficient operations with the leverage of Aramco’s vast resources and international foothold. By focusing on producing a diverse range of high-quality base oils—ranging from Group I to Group II and III—the company addresses varying market needs, from automotive applications to more specialized industrial-grade lubricants. This enables Luberef to tap into a broad spectrum of economic and industrial activity, responding to the ever-growing demand in both emerging and developed markets. Furthermore, strategic partnerships and a robust distribution network enhance its global reach, allowing Luberef to convert its product outputs into substantial revenue streams. Through these concerted efforts, Luberef not only capitalizes on its intrinsic connection to one of the world's largest oil entities but also strengthens its position as a catalyst of industrial lubrication across the globe.