Oil Markets and company valutarion :The PEMEX Case

Abstract

The analysis of the Oil markets is fundamental for the global economy. The importance that an Oil company has in each national economy is transcendental; giving the motivation to study through this research the factors that influence in the value of a company from this sector, the competition behavior that may lead to an economic cartel, the high dependence from a government on its own Oil company (Mexican case) and finally, to determine the financial value of Petróleos Mexicanos after the energy reform in this country. The research proposes a method based on Discounted Cash Flow valuation under certain assumptions (correcting Mexican market deficiencies) to obtain the PEMEX valuation.