A Financial Analysis and Valuation of Shell

Yuwen Guo

doi:10.54254/2754-1169/109/2024BJ0108

Research Article

Open access

Published on 12 October 2024

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Guo,Y. (2024). A Financial Analysis and Valuation of Shell. Advances in Economics, Management and Political Sciences,109,20-26.

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A Financial Analysis and Valuation of Shell

Yuwen Guo *^,1,

¹ School of Business Administration, South China University of Technology, Guangzhou, 510641, China

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/109/2024BJ0108

Abstract

In today’s era of global energy transition, the strategic choices made by energy giants like Shell carry immense significance, shaping not only their own future blueprint but also profoundly influencing the overall energy sector’s trends. The article provides a comprehensive analysis of Shell plc with liquidity, solvency, profitability, and valuation analysis of 2023 with its main competitors in the oil and gas industry. Despite facing challenges from fluctuating commodity prices and regulatory changes, Shell maintains a competitive advantage and favorable market position. The company demonstrates robust financial health, with strong liquidity, solvency, and profitability ratios compared to industry peers. Nevertheless, the analysis reveals the company’s profitability ratios lag behind competitors, indicating room for improvement. Although facing uncertainties in future commodity prices and regulatory environments, the analysis highlights Shell’s commitment to balancing environmental goals with shareholder value, as evidenced by its energy transition strategy. Shell’s stock is still fairly valued according to the analysis, presenting a compelling investment opportunity with its well-constructed financial framework. Overall, Shell’s strategic plans and adjustments aim to ensure resilience and adaptability, promising investors sustainable development amidst evolving market dynamics.

Keywords

Energy Industry, Shell, Financial Analysis, Valuation

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References

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Cite this article

Guo,Y. (2024). A Financial Analysis and Valuation of Shell. Advances in Economics, Management and Political Sciences,109,20-26.

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About volume

Volume title: Proceedings of ICEMGD 2024 Workshop: Innovative Strategies in Microeconomic Business Management

Conference website: https://2024.icemgd.org/

ISBN：978-1-83558-593-1(Print) / 978-1-83558-594-8(Online)

Conference date: 26 September 2024

Editor：Lukáš Vartiak, Xinzhong Bao

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.109

ISSN：2754-1169(Print) / 2754-1177(Online)

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