ExxonMobil Holdings Surges Amid Oil Price Spike, But Is It Still Undervalued?

ExxonMobil Holdings (XOM) is back in focus after crude prices rose above $100 a barrel, and conflict around the Strait of Hormuz threatened key supply routes, lifting energy shares broadly.

The share price has surged to $164.23, with a 33.90% year-to-date return translating into a 50.21% total shareholder return over the past year and a 246.85% total shareholder return over five years.

Industry-wide underinvestment in new hydrocarbon production is tightening supply, which, combined with Exxon's scale and execution of high-return projects, could support higher sustained oil and gas prices, along with strong earnings and cash flow.

The company's fair value estimate stands at $169.91, suggesting it may be undervalued by 3.3%.