Royal Dutch Shell PLC balancing oil with energy transition

This Equity Research aims to value Royal Dutch Shell, a major Oil & Gas company, as of December 2020. The valuation integrates both the current and future prospects for the industry, incorporating expected energy transition features and how these will change Shell’s value creation process. A Discounted Cash Flow valuation is performed, using Weighted Average Cost of Capital as the discount factor. These results, together with a multiples analysis, suggest that Shell is undervalued, which creates an investment opportunity.