Question Of The Day: Would You Pay $140 Billion To Own BP Right Now?

greenpeace

Photo: Sean Gardner/Greenpeace

That’s what the market is still valuing BP at. It’s about $50 billion below where it was before the Deepwater Horizon tragedy.So for $140 billion, you get:

  • An estimated $24 billion in earnings next year, for an uber-cheap forward PE of 5.8.
  • Cash of about $6 billion. (Yahoo Finance)
  • Debt of $32 billion. (Yahoo Finance)
  • A totally unknown futures liability related to the oil leak, that’s sure to spiral into the tens of billions of dollars.

Discuss.

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