Imperial Oil (TSX:IMO) has seen an 18.92% share price return in 30 days and a 63.24% one-year total shareholder return, driven by a 20% quarterly dividend increase, record annual production guidance, and higher operating cash flows. While a popular narrative suggests the stock is 37.3% overvalued with a fair value of CA$115.41, a discounted cash flow model indicates it might be undervalued by 49.1% at CA$311.53. The article explores these differing valuations and potential risks for investors.
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Imperial Oil (TSX:IMO) Valuation Check After Dividend Hike And Record Production Milestone
Imperial Oil (TSX:IMO) has seen an 18.92% share price return in 30 days and a 63.24% one-year total shareholder return, driven by a 20% quarterly dividend increase, record annual production guidance, and higher operating cash flows. While a popular narrative suggests the stock is 37.3% overvalued with a fair value of CA$115.41, a discounted cash flow model indicates it might be undervalued by 49.1% at CA$311.53. The article explores these differing valuations and potential risks for investors.