Abstract :

This study examines the financial performance and valuation of PT Adaro Energy Indonesia, a major coal mining company in Indonesia, considering declining coal prices. The analysis reveals a downward trend in the forecast coal price index from 2023 to 2030, but the company’s coal production continues to grow due to global demand. Financial ratios indicate a strong performance compared to industry peers. Discounted cash flow analysis shows positive cash flow, assuming coal price growth ceases by 2030 due to zero carbon emission policies. The study concludes that PT Adaro Energy Indonesia is overvalued and suggests strategic measures such as diversification and exploring new business areas to mitigate risks and enhance long-term sustainability.

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Keywords :

coal price volatility, Discounted cash flow, financial ratios, valuation analysis, weighted average cost of capital (WACC)

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