Valuation analysis of China national petroleum corporation

Oil is considered the lifeblood of several countries due to the political need to offer energy security. Moreover, world economies depend on the state’s supervision and control of oil prices. Thus, the relevant policies of oil companies are carefully formulated in conjunction with government policymakers. Hence, the valuation of oil enterprises is of great significance to global security and economic development. As traditional valuation models tend to underestimate petroleum enterprises, this study adopts the economic value added (EVA) model and incorporates environmental, social, and governance (ESG) indicators to ascertain a new absolute valuation indicator for China National Petroleum Corporationbased on the weighted average adjusted enterprise value, providing a new evaluation indicator for the petrochemical industry.