How Petrobras lost more than BRL 181 billion? A valuation analysis in 2010-2016.

Abstract

This paper analyzes a series with the results of an evaluation model for Petrobras' actions in 2010-2016. Our main objective is to answer the following question: how much was Petrobras' loss of value in this period marked by the crucial change from the concession regime to the sharing regime? We used three criteria to assess this loss: (i) estimation of a series of intrinsic values of PETR3 using the Damodaran valuation model; (ii) comparison with the company's market values series; (iii) calculation of a series of the company's enterprise values. The comparison by using three criteria aims to offer to the reader with three metrics that, when compared, allow him to give a clear idea of how much the company was affected by the serious management errors that destroyed an expressive part of its value

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