PRICING AND EVALUATION METHODOLOGIES: A CASE STUDY OF PTCL

Abstract

The study aims to develop pricing and evaluation techniques for PTCL that would maximize GOP’s returns. A procedural framework for the Privatization of PTCL has been established in order to ensure higher degree of investor’s participation and maximum price for the company. Also a wide variety of issues regarding privatization of state owned monopoly has been addressed in order to minimize the repercussions afterwards for GOP. Also certain pricing tools have been developed in order to assess the fair price range especially for the A’ Class Shares. The tools help in developing the fair price range in which the share is worth buying for both institutional and individual investors. The study has been verified with the actual market performance of the last five years as well. A fair price range for PTCL could be established at any point in time with the help of the pricing framework. The pricing methodology of B’ Class Shares has been developed which is one of the most significant contributions regarding valuation techniques since the issue has rarely been researched in the regional context. The methodology will be helpful in establishing price of B and C Classes of shares and in establishing the price of vote instead of cash flow. This methodology would also be helpful in pricing the strategic stake of other SOE like SSGC, SNGPL, PSO and etc. in future.