IMO Valuation

Imperial Oil Ltd

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88.210

-3.04(-3.332%)1D

IMO Relative Valuation

IMO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, IMO is overvalued; if below, it's undervalued.

Historical Valuation

Imperial Oil Ltd (IMO) is now in the Overvalued zone, suggesting that its current forward PE ratio of 17.08 is considered Overvalued compared with the five-year average of 9.55. The fair price of Imperial Oil Ltd (IMO) is between 42.00 to 70.20 according to relative valuation methord. Compared to the current price of 88.21 USD , Imperial Oil Ltd is Overvalued By 25.65%.

Relative Value

Fair Zone

42.00-70.20

Current Price：88.21

25.65%

Overvalued

17.08

Trailing

Forward

9.31

EV/EBITDA

Imperial Oil Ltd. (IMO) has a current EV/EBITDA of 9.31. The 5-year average EV/EBITDA is 5.73. The thresholds are as follows: Strongly Undervalued below 2.54, Undervalued between 2.54 and 4.13, Fairly Valued between 7.32 and 4.13, Overvalued between 7.32 and 8.91, and Strongly Overvalued above 8.91. The current Forward EV/EBITDA of 9.31 falls within the Strongly Overvalued range.

14.88

EV/EBIT

Imperial Oil Ltd. (IMO) has a current EV/EBIT of 14.88. The 5-year average EV/EBIT is 8.10. The thresholds are as follows: Strongly Undervalued below 0.71, Undervalued between 0.71 and 4.41, Fairly Valued between 11.79 and 4.41, Overvalued between 11.79 and 15.48, and Strongly Overvalued above 15.48. The current Forward EV/EBIT of 14.88 falls within the Overvalued range.

123.72

Imperial Oil Ltd. (IMO) has a current PS of 123.72. The 5-year average PS is 1.07. The thresholds are as follows: Strongly Undervalued below -11.33, Undervalued between -11.33 and -5.13, Fairly Valued between 7.27 and -5.13, Overvalued between 7.27 and 13.47, and Strongly Overvalued above 13.47. The current Forward PS of 123.72 falls within the Strongly Overvalued range.

10.22

P/OCF

Imperial Oil Ltd. (IMO) has a current P/OCF of 10.22. The 5-year average P/OCF is 6.26. The thresholds are as follows: Strongly Undervalued below 2.78, Undervalued between 2.78 and 4.52, Fairly Valued between 8.00 and 4.52, Overvalued between 8.00 and 9.73, and Strongly Overvalued above 9.73. The current Forward P/OCF of 10.22 falls within the Strongly Overvalued range.

15.38

P/FCF

Imperial Oil Ltd. (IMO) has a current P/FCF of 15.38. The 5-year average P/FCF is 8.62. The thresholds are as follows: Strongly Undervalued below 2.99, Undervalued between 2.99 and 5.80, Fairly Valued between 11.43 and 5.80, Overvalued between 11.43 and 14.25, and Strongly Overvalued above 14.25. The current Forward P/FCF of 15.38 falls within the Strongly Overvalued range.

Imperial Oil Ltd (IMO) has a current Price-to-Book (P/B) ratio of 2.52. Compared to its 3-year average P/B ratio of 2.04 , the current P/B ratio is approximately 23.41% higher. Relative to its 5-year average P/B ratio of 1.79, the current P/B ratio is about 40.84% higher. Imperial Oil Ltd (IMO) has a Forward Free Cash Flow (FCF) yield of approximately 7.57%. Compared to its 3-year average FCF yield of 10.21%, the current FCF yield is approximately -25.82% lower. Relative to its 5-year average FCF yield of 9.77% , the current FCF yield is about -22.50% lower.

2.52

P/B

Median3y

2.04

Median5y

1.79

7.57

FCF Yield

Median3y

10.21

Median5y

9.77

Competitors Valuation Multiple

The average P/S ratio for IMO's competitors is 59.33, providing a benchmark for relative valuation. Imperial Oil Ltd Corp (IMO) exhibits a P/S ratio of 123.72, which is 108.54% above the industry average. Given its robust revenue growth of -8.82%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Occidental Petroleum Corp

41.20

-5.91%

40.56B

Performance Decomposition

Market capitalization of IMO increased by 19.33% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 8.75 to 15.78.

The secondary factor is the Revenue Growth, contributed -8.82%to the performance.

Overall, the performance of IMO in the past 1 year is driven by P/E Change. Which is more unsustainable.

-8.82%

13.22B → 12.05B

Revenue Growth

-52.24%

9.36 → 4.47

Margin Expansion

80.39%

8.75 → 15.78

P/E Change

19.33%