Intrinsic Value Evaluation of CNPC: A Comprehensive Analysis

Authors

  • Yiliang Cao

DOI:

https://doi.org/10.62051/ijgem.v4n2.27

Keywords:

China National Petroleum Corporation (CNPC), Intrinsic value, Valuation system

Abstract

This paper aims to evaluate the intrinsic value of China National Petroleum Corporation (CNPC) through a specially designed valuation system tailored to the unique characteristics of the Chinese oil industry. Utilizing an entropy method to calculate the company's valuation premium rate, referred to as the "China-Specific Valuation Premium Rate" (CSVPR), the analysis incorporates various valuation models, including the Free Cash Flow to Firm (FCFF) model, Dividend Discount Model (DDM), Economic Value Added (EVA) model, and Relative Valuation model.

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References

[1] Ye, C., Li, W., Ye, Y., He, Z., & Zheng, W. (2023). Construction of Valuation System with Chinese Characteristics Based on Entropy Weight Method and K-means. Financial Engineering and Risk Management, 6(11), 132-139.

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[3] Rehman, R., & Raoof, A. (2010). Weighted average cost of capital (WACC) traditional vs new approach for calculating the value of firm. International Research Journal of Finance and Economics, 45, 7-9.

[4] Krüger, P., Landier, A., & Thesmar, D. (2015). The WACC fallacy: The real effects of using a unique discount rate. The Journal of Finance, 70(3), 1253-1285.

[5] Shrieves, R. E., & Wachowicz Jr, J. M. (2001). Free cash flow (FCF), economic value added (EVA™), and net present value (NPV):. a reconciliation of variations of discounted-cash-flow (DCF) valuation. The engineering economist, 46(1), 33-52.

[6] Biddle, G. C., Bowen, R. M., & Wallace, J. S. (1997). Does EVA® beat earnings? Evidence on associations with stock returns and firm values. Journal of accounting and economics, 24(3), 301-336.

[7] Jacobs, B. I., & Levy, K. N. (1988). On the value of ‘value’. Financial Analysts Journal, 44(4), 47-62.

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Published

28-09-2024

Issue

Section

Arcicles

How to Cite

Cao, Y. (2024). Intrinsic Value Evaluation of CNPC: A Comprehensive Analysis. International Journal of Global Economics and Management, 4(2), 269-274. https://doi.org/10.62051/ijgem.v4n2.27