Valuation of PT Pertamina (Persero) post restructuring
List of Authors
  • Raden Aswin Rahadi , Rico Milza

Keyword
  • SOTP Valuation, FCFF, Relative Valuation, Pertamina, Oil and Gas

Abstract
  • This research aims to assess the valuation of Pertamina post restructuring using the Sum of The Part (SOTP) valuation method of each sub-holdings and subsidiaries. Internal and external analysis of each sub-holdings and subsidiaries used as the input of the valuation process. Intrinsic valuation method using FCFF and relative valuation method using EV/EBITDA and P/BV used to calculate the implied equity value of each sub-holdings and subsidiaries. FCFF valuation results of each sub-holdings and subsidiaries post restructuring revealed the total implied equity value of USD 75,23 billion. The total relative valuation result of each sub-holdings and subsidiaries is USD 76,04 billion. Average total implied equity value using both methods is USD 75,65 billion. After net cash and debt adjustment of USD -9,79 billion, the average total implied equity value for PT Pertamina (Persero) is USD 65,85 billion, much lower than shareholder’s aspirations of USD 100 billion. The total implied equity value can reach USD 100,9 billion in the optimistic scenario and becomes USD 36,06 billion in the pessimistic scenario. Sensitivity analysis of valuation variables conclude that ICP is the most sensitive variable to PHE as the major contributor for Pertamina valuation. Majority of other sub-holdings and subsidiaries' most sensitive variable is cost of revenue.

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