The Discounted Cash Flow (DCF) valuation of Imperial Oil Ltd (IMO.TO) is 120.35 CAD. With the latest stock price at 101.36 CAD, the upside of Imperial Oil Ltd based on DCF is 18.7%.

Is IMO.TO a buy or a sell?

Based on the latest price of 101.36 CAD and our DCF valuation, Imperial Oil Ltd (IMO.TO) is a buy. Buying IMO.TO stocks now will result in a potential gain of 18.7%.

	Range	Selected
WACC / Discount Rate	7.3% - 9.7%	8.5%
Long-term Growth Rate	0.5% - 1.5%	1.0%
Fair Price	99.14 - 154.05	120.35
Upside	-2.2% - 52.0%	18.7%

101.36 CAD

Stock Price

120.35 CAD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

IMO.TO DCF Valuation: Revenue & Expenses Forecast

(CAD in millions)		Projections

	12-2024	12-2025	12-2026	12-2027	12-2028	12-2029

Revenue	51,359	52,269	53,314	54,823	56,183	58,280
% Growth	1%	2%	2%	3%	2%	4%

Cost of goods sold	(39,783)	(40,488)	(41,298)	(42,466)	(43,520)	(45,144)
% of Revenue	77%	77%	77%	77%	77%	77%

Selling, G&A expenses	(3,480)	(3,542)	(3,612)	(3,715)	(3,807)	(3,949)
% of Revenue	7%	7%	7%	7%	7%	7%

Research & Development	(3)	(3)	(3)	(3)	(3)	(3)
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	(1,854)	(1,887)	(1,925)	(1,979)	(2,028)	(2,104)
% of Revenue	4%	4%	4%	4%	4%	4%

Tax expense	(1,449)	(1,475)	(1,504)	(1,547)	(1,585)	(1,644)
Tax rate	23%	23%	23%	23%	23%	23%

Net profit	4,790	4,875	4,972	5,113	5,240	5,435
% Margin	9%	9%	9%	9%	9%	9%