Company Fair Valuation Considering Esg Factor (Case Study: Pt Pertamina Geothermal Energy, Tbk)

The increments of environmental, social, and governance-based investments have been seen recently by institutions or retail investors. growth has increased rapidly since 2012. Some research gives a positive correlation between the ESG factor represented rating company performance. PT Pertamina Geothermal Energy, Tbk. (PGEO), IPO on 24th February 2023 outstanding It was audited Sustainable Fitch got highest second rank, 77 out 100 points. Not only is it exceptional performance, but also excellent business PGEO started its journey geothermal utilization in 1974, upon discovering 70 areas Indonesia as sub-business EP. established 2006 to continue efforts produce clean environmentally friendly energy, now, contributed 82% installed energy capacity Indonesia. world’s most extensive December 2021 promises expand even more significantly prospectus. Investors should consider their value rather than sentiment an investment decision. Then, this study determines whether price undervalued overvalued considering project expansion factor. This utilizes secondary data from prospectuses, financial statements, annual reports, sustainability company-published documents, IDX.co.id stockbit.com. gathered processed understand need expand, analyze company. author considers performance develop projections. To fulfill stay sustained adding production, injection, startup wells, needs 1.588.612.527 USD using ESG-based financing. historical quite good, investor be careful about liquidity current liability significant asset. Based calculation absolute valuation discounted cash flow, each share Rp12.686,00, which undervalued, Rp875,00. relative PER peers average industry, PGEO’s overvalued. that pars with industry Rp490,00. can determine fundamental PGEO.