ExxonMobil has become one of the most profitable company in its industry in past ten
years, the company has been making profits due to higher sales of its products
in Asian countries. The company’s profits have been at all-time high in past
ten years, the average of last ten year profits is recorded to be 4.5% on
yearly basis. The energy demand has been quite high in these past ten years in
the Asian countries because the developing countries have been improving their
economy.
The price to earnings ratio of the company has been around 11.5, and
considering the Price to Earnings ratio the XOM stock is overvalued comparatively to its historical price to
earnings ratio. Exxon Mobil provides dividend of 2.5% and the share repurchase
of the company has been 2.75% on yearly basis. The compounding annual growth
rate of Exxon Share is around 9% on yearly basis, which is why XOM stock has been performing well in
past several years.
No comments:
Post a Comment