Lukoil Valuation

Dear Reader,

Lukoil, the Russian global oil and natural gas production company is currently valued by global equities markets at 55 billion USD.

I believe the intrinsic worth of Lukoil is around 120 billion USD with a time horizon of 5-7 years to realize that value. Why? Lukoil made in 2019 approximately 114 billion USD revenue. Lukoil trades at 5.84 Price/Earnings ratio with the huge dividend yield of 9.31%. The Russian Ruble has been strengthening of late. I estimate Lukoil is grossly undervalued. 

Oil and natural gas demand will continue to be much stronger than the current consensus by many analysts.

That is why I think Lukoil's intrinsic worth is 120 billion USD currently.

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Respectfully yours,

Petar Posledovich