Imperial Oil Valuation

IMO Stock  USD 69.13  0.48  0.70%   
At this time, the firm appears to be undervalued. Imperial Oil retains a regular Real Value of $72.38 per share. The prevalent price of the firm is $69.13. Our model calculates the value of Imperial Oil from evaluating the firm fundamentals such as Return On Equity of 0.22, current valuation of 39.36 B, and Return On Asset of 0.0911 as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors encourage obtaining undervalued assets and abandoning overvalued assets since, at some point, asset prices and their ongoing real values will come together.
Price Book
2.2494
Enterprise Value
39.4 B
Enterprise Value Ebitda
4.7161
Price Sales
0.7259
Forward PE
11.3507
Undervalued
Today
69.13
Please note that Imperial Oil's price fluctuation is very steady at this time. Calculation of the real value of Imperial Oil is based on 3 months time horizon. Increasing Imperial Oil's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Imperial Oil is useful when determining the fair value of the Imperial stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Imperial Oil. Since Imperial Oil is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Imperial Stock. However, Imperial Oil's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  69.13 Real  72.38 Target  67.37 Hype  69.02 Naive  69.12
The real value of Imperial Stock, also known as its intrinsic value, is the underlying worth of Imperial Oil Company, which is reflected in its stock price. It is based on Imperial Oil's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Imperial Oil's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Imperial Oil's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
72.38
Real Value
73.85
Upside
Estimating the potential upside or downside of Imperial Oil helps investors to forecast how Imperial stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Imperial Oil more accurately as focusing exclusively on Imperial Oil's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
1.181.652.87
Details
Hype
Prediction
LowEstimatedHigh
67.5569.0270.49
Details
Potential
Annual Dividend
LowForecastedHigh
0.290.290.29
Details
18 Analysts
Consensus
LowTarget PriceHigh
61.3167.3774.78
Details

Imperial Oil Investments

(1.67 Billion)

Imperial Oil Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Imperial Oil's current stock value. Our valuation model uses many indicators to compare Imperial Oil value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Imperial Oil competition to find correlations between indicators driving Imperial Oil's intrinsic value. More Info.
Imperial Oil is currently regarded as number one stock in five year return category among related companies. It is currently regarded as number one stock in annual yield category among related companies fabricating about  0.01  of Annual Yield per Five Year Return. The ratio of Five Year Return to Annual Yield for Imperial Oil is roughly  96.90 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Imperial Oil by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Imperial Oil's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Imperial Oil's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Imperial Oil's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Imperial Oil and how it compares across the competition.

About Imperial Oil Valuation

The stock valuation mechanism determines the current worth of Imperial Oil on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Imperial Oil. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Imperial Oil based exclusively on its fundamental and basic technical indicators. By analyzing Imperial Oil's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Imperial Oil's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Imperial Oil. We calculate exposure to Imperial Oil's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Imperial Oil's related companies.
Last ReportedProjected for 2024
Gross Profit15.8 B16.6 B
Pretax Profit Margin 0.12  0.12 
Operating Profit Margin 0.12  0.12 
Net Profit Margin 0.1  0.06 
Gross Profit Margin 0.23  0.28 

8 Steps to conduct Imperial Oil's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Imperial Oil's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Imperial Oil's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Imperial Oil's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Imperial Oil's revenue streams: Identify Imperial Oil's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Imperial Oil's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Imperial Oil's growth potential: Evaluate Imperial Oil's management, business model, and growth potential.
  • Determine Imperial Oil's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Imperial Oil's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Imperial Oil's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Imperial Oil's value is low or high relative to the company's performance and growth projections. Determining the market value of Imperial Oil can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Imperial Oil represents a small ownership stake in the entity. As a stockholder of Imperial, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Imperial Oil Dividends Analysis For Valuation

Please note that Imperial Oil has scaled down on payment of dividends at this time. As of the 28th of March 2024, Retained Earnings is likely to drop to about 11.2 B. In addition to that, Price Earnings Ratio is likely to drop to 6.28
There are various types of dividends Imperial Oil can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Imperial shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Imperial Oil directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Imperial pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Imperial Oil by the value of the dividends paid out.

Imperial Oil Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Imperial Oil does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding575.9 M
Quarterly Earnings Growth Y O Y-0.137
Forward Price Earnings11.3507

Imperial Oil Current Valuation Indicators

Valuation refers to the process of determining the present value of Imperial Oil and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Imperial we look at many different elements of the entity such as Imperial's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Imperial Oil's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Imperial Oil's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Imperial Oil, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Imperial Oil's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Imperial Oil's worth.
When determining whether Imperial Oil offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Imperial Oil's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Imperial Oil Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Imperial Oil Stock:
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Imperial Oil. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
To learn how to invest in Imperial Stock, please use our How to Invest in Imperial Oil guide.
You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.

Complementary Tools for Imperial Stock analysis

When running Imperial Oil's price analysis, check to measure Imperial Oil's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Imperial Oil is operating at the current time. Most of Imperial Oil's value examination focuses on studying past and present price action to predict the probability of Imperial Oil's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Imperial Oil's price. Additionally, you may evaluate how the addition of Imperial Oil to your portfolios can decrease your overall portfolio volatility.
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Is Imperial Oil's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Imperial Oil. If investors know Imperial will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Imperial Oil listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.14)
Dividend Share
1.94
Earnings Share
6.25
Revenue Per Share
88.208
Quarterly Revenue Growth
(0.1)
The market value of Imperial Oil is measured differently than its book value, which is the value of Imperial that is recorded on the company's balance sheet. Investors also form their own opinion of Imperial Oil's value that differs from its market value or its book value, called intrinsic value, which is Imperial Oil's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Imperial Oil's market value can be influenced by many factors that don't directly affect Imperial Oil's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Imperial Oil's value and its price as these two are different measures arrived at by different means. Investors typically determine if Imperial Oil is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Imperial Oil's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.