Published on 19 Jun 2024 on Simply Wall St. · via Yahoo Finance
An Intrinsic Calculation For Imperial Oil Limited (TSE:IMO) Suggests It's 50%...
Key Insights
The projected fair value for Imperial Oil is CA$178 based on 2 Stage Free Cash Flow to EquityCurrent share price of CA$89.88 suggests Imperial Oil is potentially 50% undervalued The CA$99.59 analyst price target for IMO is 44% less than our estimate of fair value
In this article we are going to estimate the intrinsic value of Imperial Oil Limited (TSE:IMO) by taking the forecast future cash flows of the company and discounting them back to today's value. Our analysis will employ the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex.