Valuation Model for an Oil & Gas E&P Company

This is a valuation model of a leading petroleum company operating in Pakistan, Pakistan Petroleum Limited. You can clearly see how this comprehensive model entails working on each individual component of the business, for instance, production and sales separately eventually building up within the model.

Although many businesses are based on simpler models, and are handled very differently from this one, some analysts focus on the complexity and predicting each individual tiny component so much that they lose sight of the big picture. I will be talking about how to go about modeling in some of the future posts where you will get to learn the to-dos and not-to-dos of the modeling world. It is always best to keep things simple, which can make life easier for everyone and increase utility of the financial model many folds.