London’s big firms ‘could double valuations with New York switch’

Analysis by AJ Bell suggests that Shell, Diageo and British American Tobacco would see their market capitalisations jump
Emma Powell
The Times
Several companies have moved their listing to New York which has raise questions about the attractions of London as a home for major global companies
Several companies have moved their listing to New York which has raise questions about the attractions of London as a home for major global companies
GETTY
Emma Powell
The Times

Some of London’s largest listed companies could see their valuations as much as double by moving to New York, according to a new analysis, underscoring the appeal for companies considering switching their listings away from the UK.

Shell, Diageo and British American Tobacco could see their market capitalisations jump if their shares were priced based on the same earnings multiples as their New York-listed peers, AJ Bell, the funds platform, has found.

The tobacco giant BAT is currently worth around £52.9 billion, a 56 per cent discount to its US rival Philip Morris, which implies that the UK-listed company could be worth £121 billion if it were to head stateside.

Meanwhile, Shell could see its value rise by almost a third, from £186 billion to