Does PetroChina Worth: A Comparative Study Using Multiples Methods in the Post-Pandemic Petrol Industry

Research Article
Open access

Does PetroChina Worth: A Comparative Study Using Multiples Methods in the Post-Pandemic Petrol Industry

Chenyu Liu 1*
  • 1 Department of Economics, University of Edinburgh, Edinburgh, United Kingdom    
  • *corresponding author s2490218@ed.ac.uk
AEMPS Vol.186
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-153-2
ISBN (Online): 978-1-80590-154-9

Abstract

This paper analyzes the valuation of PetroChina by comparing it with competitors Sinopec, CNOOC, and ExxonMobil, using multiples valuation methods including Price-to-Earnings (P/E) and Enterprise Value-to-EBITDA (EV/EBITDA). Focusing on the financial performance from 2019 to 2023, it highlights PetroChina’s post-pandemic recovery, marked by growing revenues, improved profitability, higher efficiency, and stronger financial stability. Despite these positive financial indicators, the valuation analysis shows that PetroChina remains undervalued compared to its domestic and global peers. This undervaluation likely stems from investor concerns regarding state ownership, regulatory factors, and geopolitical uncertainties. The research identifies a gap between PetroChina’s fundamental strengths and market valuation, suggesting its stock is an appealing investment opportunity. The paper further recommends that PetroChina enhance investor trust through improved transparency and governance. Finally, future research could examine broader qualitative factors such as ESG considerations and technological advancements, providing deeper insights into company valuations within the oil and gas industry.

Keywords:

PetroChina, Stock Price, Multiples Valuation

Liu,C. (2025). Does PetroChina Worth: A Comparative Study Using Multiples Methods in the Post-Pandemic Petrol Industry. Advances in Economics, Management and Political Sciences,186,28-35.
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References

[1]. Department of Economics, University of Edinburgh, Edinburgh, United Kingdom

[2]. Longxin, M. U., Yaqiang, C. H. E. N., Anzhu, X. U., & Ruifeng, W. A. N. G. (2020). Technological progress and development directions of PetroChina overseas oil and gas field production. Petroleum Exploration and Development, 47(1), 124-133.

[3]. PETROCHINA COMPANY LIMITED ANNUAL REPORT Stock Code: 857 ( a joint stock limited company incorporated in the People’s Republic of China with limited liability ). Retrieved from https://www.petrochina.com.cn/ptr/rdxx/202404/82094bcd144f40068ae45d46d48b643b/files/f9a9a2c3b2cb4029b33399ea3c699fa6.pdf

[4]. Chen, D. (2013). China's State-Owned Enterprises: How Much Do We Know? From CNOOC to Its Siblings. From CNOOC to Its Siblings (June 6, 2013). SPP Research Paper, (6-19).

[5]. Qun, L. E. I., Dingwei, W. E. N. G., Bo, C. A. I., Chunming, H., Yang, S., & Zeyuan, M. (2023). Progress, key challenges and countermeasures of reservoir stimulation technology of PetroChina. China Petroleum Exploration, 28(5), 15.

[6]. Qijun, H., Haiqing, H., Jianzhong, L., & Tao, Y. (2018). Recent progress and prospect of oil and gas exploration by PetroChina Company Limited. China petroleum exploration, 23(1), 1.

[7]. Li, M., Trencher, G., & Asuka, J. (2022). The clean energy claims of BP, Chevron, ExxonMobil and Shell: A mismatch between discourse, actions and investments. PloS one, 17(2), e0263596.

[8]. Osmundsen, P., Asche, F., Misund, B., & Mohn, K. (2006). Valuation of international oil companies. The Energy Journal, 27(3), 49-64.

[9]. Kenneth, R. (2015) Here Is Where PetroChina Really Beats Exxon. Retrieved from https://www.forbes.com/sites/kenrapoza/2015/04/12/when-it-comes-to-oil-petrochina-still-not-as-big-as-exxon/

[10]. Guo, H. (2012, September). Estimating Volatilities by the GARCH and the EWMA model of PetroChina and TCL in the Stock Exchange Market of China. In Proceedings of the 6th International Scientific Conference Managing and Modelling of Financial Risks, Ostrava, Czech Republic (pp. 10-11).

[11]. Liu, J., Nissim, D., & Thomas, J. (2002). Equity valuation using multiples. Journal of Accounting Research, 40(1), 135-172.

Cite this article

Liu,C. (2025). Does PetroChina Worth: A Comparative Study Using Multiples Methods in the Post-Pandemic Petrol Industry. Advances in Economics, Management and Political Sciences,186,28-35.

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About volume

Volume title: Proceedings of ICMRED 2025 Symposium: Effective Communication as a Powerful Management Tool

ISBN：978-1-80590-153-2(Print) / 978-1-80590-154-9(Online)
Editor：Lukáš Vartiak
Conference website: https://2025.icmred.org/Bratislava.html
Conference date: 30 May 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.186
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Department of Economics, University of Edinburgh, Edinburgh, United Kingdom

[2]. Longxin, M. U., Yaqiang, C. H. E. N., Anzhu, X. U., & Ruifeng, W. A. N. G. (2020). Technological progress and development directions of PetroChina overseas oil and gas field production. Petroleum Exploration and Development, 47(1), 124-133.

[3]. PETROCHINA COMPANY LIMITED ANNUAL REPORT Stock Code: 857 ( a joint stock limited company incorporated in the People’s Republic of China with limited liability ). Retrieved from https://www.petrochina.com.cn/ptr/rdxx/202404/82094bcd144f40068ae45d46d48b643b/files/f9a9a2c3b2cb4029b33399ea3c699fa6.pdf

[4]. Chen, D. (2013). China's State-Owned Enterprises: How Much Do We Know? From CNOOC to Its Siblings. From CNOOC to Its Siblings (June 6, 2013). SPP Research Paper, (6-19).

[5]. Qun, L. E. I., Dingwei, W. E. N. G., Bo, C. A. I., Chunming, H., Yang, S., & Zeyuan, M. (2023). Progress, key challenges and countermeasures of reservoir stimulation technology of PetroChina. China Petroleum Exploration, 28(5), 15.

[6]. Qijun, H., Haiqing, H., Jianzhong, L., & Tao, Y. (2018). Recent progress and prospect of oil and gas exploration by PetroChina Company Limited. China petroleum exploration, 23(1), 1.

[7]. Li, M., Trencher, G., & Asuka, J. (2022). The clean energy claims of BP, Chevron, ExxonMobil and Shell: A mismatch between discourse, actions and investments. PloS one, 17(2), e0263596.

[8]. Osmundsen, P., Asche, F., Misund, B., & Mohn, K. (2006). Valuation of international oil companies. The Energy Journal, 27(3), 49-64.

[9]. Kenneth, R. (2015) Here Is Where PetroChina Really Beats Exxon. Retrieved from https://www.forbes.com/sites/kenrapoza/2015/04/12/when-it-comes-to-oil-petrochina-still-not-as-big-as-exxon/

[10]. Guo, H. (2012, September). Estimating Volatilities by the GARCH and the EWMA model of PetroChina and TCL in the Stock Exchange Market of China. In Proceedings of the 6th International Scientific Conference Managing and Modelling of Financial Risks, Ostrava, Czech Republic (pp. 10-11).

[11]. Liu, J., Nissim, D., & Thomas, J. (2002). Equity valuation using multiples. Journal of Accounting Research, 40(1), 135-172.

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