Citation:

Fawzi Haris Nugroho, Yunieta Anny Nainggolan. "Stock Valuation of a Geothermal Company in Indonesia Considering Carbon Trading Activity Case Study: PT Pertamina Geothermal Energy" International Research Journal of Economics and Management Studies, Vol. 3, No. 1, pp. 184-195, 2024.

Abstract:

Pertamina Geothermal Energy, a major Indonesian geothermal energy company, holds vast potential with its existing power plants and expansion plans. This research explores Pertamina Geothermal Energy’s financial performances throughout 2019-2022, focusing on carbon trading's potential to become a significant revenue stream amid a growing carbon credit market. Analyzing both traditional electricity generation and carbon trading revenue growth. Valuing the company’s stock price using absolute and relative valuation methods. The research concludes Pertamina Geothermal Energy’s share price is undervalued in each scenario with a projected carbon revenue contribution of 0.75%-11% by 2033, highlighting its promising future in the evolving renewable energy and sustainability landscape.

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Keywords:

Absolute Valuation, Carbon Credit, DCF Method, Relative Valuation, Stock Valuation.