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    Most valuable companies in history, adjusted for inflation

    When Apple surpassed Exxon-Mobil as the world’s most valuable company in August 2012, it ignited a debate over what, precisely, “most valuable” means--and how inflation influences the calculation. Apple’s 2012 market valuation topped out at $661 billion U.S., the highest absolute-value figure in history, but a longer-term view of other corporate giants shows it has a ways to go before it can claim the all-time, inflation-adjusted top prize. Here are history's 9 most valuable companies, adjusted for inflation.

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    1. 4. Saudi Aramco in 2012
      Value today: U.S. $3.6 trillion. Adjusted to 2012 dollars: U.S. $3.6 trillion.

      HOW IT GOT SO BIG: The company’s growth was largely due to it sitting on top of the world’s largest oil reserves, and controlling access to them as they were initially developed. It began operations in Saudi Arabia in 1933 after the Saudi government granted Standard Oil permission to start drilling. The state gradually bought out its in-country ... more 
      4. Saudi Aramco in 2012
      Value today: U.S. $3.6 trillion. Adjusted to 2012 dollars: U.S. $3.6 trillion.

      HOW IT GOT SO BIG: The company’s growth was largely due to it sitting on top of the world’s largest oil reserves, and controlling access to them as they were initially developed. It began operations in Saudi Arabia in 1933 after the Saudi government granted Standard Oil permission to start drilling. The state gradually bought out its in-country assets until achieving 100% ownership by 1980. Saudi Aramco now tops virtually all world’s-largest lists all thanks to its globe-leading reserves of 260 billion barrels and 7.9 billion barrel annual production rate. At recent baselines of $90/barrel, it’s sitting on a $23.4 trillion in potential revenue that makes University of Texas finance professor Sheridan Titman’s $3.6 trillion valuation seem relatively conservative.

      WHAT’S HAPPENED SINCE: The company continues to aggressively invest in driving up production capacity.



      Image: Business Insider less 

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    1. Thu, Nov 1, 2012 4:00 PM EDT

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