P/E Ratio

The P/E ratio of 22.5x means that for every dollar of Imperial Oil's earnings, investors are currently paying $22.50 — a measure of how expensive the stock is relative to its profits.

This is well above the sector median of 15.3x, placing the company in the 76th percentile among its energy peers, indicating a higher valuation than most competitors. The metric has been stable over the last eight quarters, with the most recent three values at 22.5x, 21.1x, and 22.6x, though quarter-over-quarter it increased by 6.6% (year-over-year change is not available). A high and stable P/E combined with a +6.6% QoQ rise suggests that the stock’s already elevated valuation is still being pushed higher, raising the risk of a correction if earnings disappoint. This elevated multiple relative to the sector and the upward trend contradict the overall CAUTIOUS verdict, as a cautious stance typically favors lower valuations or deteriorating trends rather than a premium that is still expanding.

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