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Unocal Corporation (UCL) Message Board

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  • huikh2r huikh2r Jun 16, 2005 5:53 PM Flag

    My direction

    "Just look at the graph for the past year UCL versus XOM and you will see there is a big premium built into the price. Remember the rumour and runup in price started well before the CVX offer. As far as the P/E it's currently 11.95 versus CVX at 9.11 so which is under priced? COP is about the same as CVX. XOM is at 14.04 but it has been much higher than the smaller companies for as long as I can remember."

    Well, I don't think it is fair to compare UCL's P/E to CVX's P/E. because they are not the same size. CVX is way bigger than UCL. Usually bigger established companies tend to have lower P/E because they have less future growth potential than smaller companies. For instance, GM and FORD also have very low P/E

    What about compare UCL to PTEN. UCL's P/E=11, PTEN P/E= 30, and PTEN is still going up strong.

    Even XOM's P/E=14, with market cap > 300B.

    Don't you still believe UCL is undervalued?

    If Chevron wants to buy UCL, it has to pay its current market value (which is already greater than 16 billion) plus future growth.