International Petroleum (TSX:IPCO) Could Be 7% Undervalued Following Share Cancellation
International Petroleum (TSX:IPCO) has cancelled 205,790 common shares that were previously repurchased under its normal course issuer bid. The outstanding share count now sits at 111,521,876, with no shares held in treasury.
At a share price of CA$40.11, International Petroleum has seen strong momentum build over recent months. A 30-day share price return of 14.96% has contributed to a 57.60% year-to-date move and a 1-year total shareholder return of 80.03%, which extends to 457.08% over five years.
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After a CA$40.11 quote and a five year return that is a multiple of the starting point, the real tension is simple: Does International Petroleum still stack up on valuation, or is patience the better entry?
Most Popular Narrative: 7% Undervalued
On the most followed view, International Petroleum screens as modestly undervalued, with a fair value of CA$43.06 against the last close at CA$40.11. That gap rests heavily on how its long life oil projects convert into cash generation over the next few years.
The ramp up of International Petroleum’s Blackrod Phase 1 project, which reached first oil on 31 May 2026 and targets a 30,000 bbl/d plateau with a breakeven of US$47 WTI, is expected to shift the business from heavy growth capex toward structurally higher operating cash flow and free cash flow, supporting revenue and earnings.
See why 9 investors see International Petroleum as 7% undervalued.
Result: Fair Value of CA$43.06 (UNDERVALUED)
Still, the story around International Petroleum only holds if Blackrod Phase 1 ramps smoothly and if higher exposure to unhedged oil prices does not erode margins.
Find out about the key risks to this International Petroleum narrative.
Another View: Market Pricing Looks Richer
There is a very different picture when looking at International Petroleum through its P/S ratio. The stock trades at 4.6x sales, well above the Canadian oil and gas industry at 2.8x and also higher than a fair ratio of 1.7x that the market could move toward. That gap points to more valuation risk than the headline 7% discount implies, so which signal do you treat as your anchor?
See what the numbers say about this price, find out in our valuation breakdown See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Mixed views like these on International Petroleum only matter if you test them against the raw numbers yourself and decide what feels credible. Move quickly, review both the upside and downside signals, then weigh the 2 key rewards and 2 important warning signs
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