Last week, Reliance Industries (RIL) achieved the coveted milestone of crossing $200 billion in market capitalisation. There are lower than 50 corporations globally that are valued at greater than $200 billion.
Morgan Stanley analysed how the Mukesh Ambani-led agency stacked up towards eight world corporations after they crossed the $200-billion milestone.
For occasion, when video-streaming firm Netflix crossed $200 billion in market cap in June, it had one-year ahead revenues of $29 billion, towards $83 billion for RIL ($41 billion excluding power enterprise). Its price-to-earnings (P/E) a number of was 52x in comparison with 28x for RIL (ex-energy). All different tech gaints Amazon, Tencent, and Facebook additionally traded at a lot increased valuations in comparison with RIL after they crossed the $200-billion valuation mark.
“RIL’s $200 billion market cap does not reflect very aggressive forward multiples when compared to technology or even energy peers when they reached this milestone,” noticed Morgan Stanley analysts Mayank Maheshwari, Ridham Desai, and Simeon Gutman in a notice.
The jury remains to be out on whether or not RIL ought to be valued like FAANG shares. Notably, RIL’s one-year ahead revenues for the digital and retail companies are a lot decrease than what Amazon, Apple or Walmart had.
Also, Ebitda for ex-energy enterprise is at the moment much like Netflix, however a lot decrease than many different tech and retail giants, noticed the brokerage.