Intrinsic value of Total ADR - TOT

Previous Close

$58.38

  Intrinsic Value

$9.69

stock screener

  Rating & Target

str. sell

-83%

Previous close

$58.38

 
Intrinsic value

$9.69

 
Up/down potential

-83%

 
Rating

str. sell

We calculate the intrinsic value of TOT stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -10.80
  16.50
  15.35
  14.32
  13.38
  12.55
  11.79
  11.11
  10.50
  9.95
  9.46
  9.01
  8.61
  8.25
  7.92
  7.63
  7.37
  7.13
  6.92
  6.73
  6.55
  6.40
  6.26
  6.13
  6.02
  5.92
  5.83
  5.74
  5.67
  5.60
  5.54
Revenue, $m
  127,925
  149,033
  171,909
  196,518
  222,819
  250,772
  280,339
  311,490
  344,197
  378,446
  414,230
  451,551
  490,424
  530,874
  572,936
  616,656
  662,089
  709,303
  758,371
  809,380
  862,423
  917,601
  975,028
  1,034,821
  1,097,110
  1,162,029
  1,229,724
  1,300,347
  1,374,061
  1,451,033
  1,531,445
Variable operating expenses, $m
 
  144,095
  166,196
  189,971
  215,380
  242,385
  270,950
  301,044
  332,643
  365,731
  400,301
  436,241
  473,796
  512,875
  553,511
  595,748
  639,641
  685,254
  732,659
  781,938
  833,183
  886,491
  941,970
  999,736
  1,059,913
  1,122,631
  1,188,031
  1,256,260
  1,327,474
  1,401,837
  1,479,522
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  122,194
  144,095
  166,196
  189,971
  215,380
  242,385
  270,950
  301,044
  332,643
  365,731
  400,301
  436,241
  473,796
  512,875
  553,511
  595,748
  639,641
  685,254
  732,659
  781,938
  833,183
  886,491
  941,970
  999,736
  1,059,913
  1,122,631
  1,188,031
  1,256,260
  1,327,474
  1,401,837
  1,479,522
Operating income, $m
  5,731
  4,937
  5,713
  6,547
  7,439
  8,387
  9,389
  10,445
  11,554
  12,715
  13,929
  15,310
  16,628
  17,999
  19,425
  20,907
  22,448
  24,049
  25,712
  27,442
  29,240
  31,111
  33,058
  35,085
  37,197
  39,398
  41,693
  44,088
  46,587
  49,196
  51,923
EBITDA, $m
  20,154
  21,772
  25,114
  28,709
  32,551
  36,635
  40,954
  45,505
  50,283
  55,287
  60,514
  65,966
  71,645
  77,554
  83,699
  90,086
  96,724
  103,621
  110,789
  118,241
  125,990
  134,051
  142,440
  151,175
  160,275
  169,759
  179,648
  189,966
  200,734
  211,979
  223,726
Interest expense (income), $m
  1,028
  1,380
  2,062
  2,802
  3,598
  4,449
  5,353
  6,309
  7,317
  8,375
  9,483
  10,641
  11,848
  13,106
  14,414
  15,775
  17,189
  18,659
  20,186
  21,774
  23,424
  25,140
  26,925
  28,783
  30,717
  32,732
  34,832
  37,022
  39,307
  41,691
  44,182
Earnings before tax, $m
  7,176
  3,558
  3,651
  3,745
  3,841
  3,938
  4,036
  4,136
  4,237
  4,340
  4,445
  4,669
  4,779
  4,893
  5,011
  5,132
  5,259
  5,389
  5,526
  5,668
  5,816
  5,971
  6,133
  6,302
  6,480
  6,666
  6,861
  7,065
  7,280
  7,505
  7,741
Tax expense, $m
  970
  961
  986
  1,011
  1,037
  1,063
  1,090
  1,117
  1,144
  1,172
  1,200
  1,261
  1,290
  1,321
  1,353
  1,386
  1,420
  1,455
  1,492
  1,530
  1,570
  1,612
  1,656
  1,702
  1,750
  1,800
  1,852
  1,908
  1,966
  2,026
  2,090
Net income, $m
  6,196
  2,597
  2,665
  2,734
  2,804
  2,875
  2,946
  3,019
  3,093
  3,168
  3,245
  3,408
  3,489
  3,572
  3,658
  3,747
  3,839
  3,934
  4,034
  4,137
  4,246
  4,359
  4,477
  4,601
  4,730
  4,866
  5,008
  5,158
  5,314
  5,479
  5,651

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  29,104
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  230,978
  235,067
  271,150
  309,965
  351,449
  395,539
  442,176
  491,308
  542,898
  596,918
  653,359
  712,225
  773,539
  837,341
  903,684
  972,643
  1,044,305
  1,118,774
  1,196,169
  1,276,625
  1,360,288
  1,447,321
  1,537,899
  1,632,210
  1,730,457
  1,832,854
  1,939,628
  2,051,021
  2,167,288
  2,288,696
  2,415,528
Adjusted assets (=assets-cash), $m
  201,874
  235,067
  271,150
  309,965
  351,449
  395,539
  442,176
  491,308
  542,898
  596,918
  653,359
  712,225
  773,539
  837,341
  903,684
  972,643
  1,044,305
  1,118,774
  1,196,169
  1,276,625
  1,360,288
  1,447,321
  1,537,899
  1,632,210
  1,730,457
  1,832,854
  1,939,628
  2,051,021
  2,167,288
  2,288,696
  2,415,528
Revenue / Adjusted assets
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
Average production assets, $m
  124,809
  145,456
  167,783
  191,801
  217,471
  244,753
  273,611
  304,014
  335,937
  369,363
  404,288
  440,714
  478,654
  518,133
  559,185
  601,856
  646,199
  692,279
  740,170
  789,955
  841,724
  895,579
  951,627
  1,009,986
  1,070,779
  1,134,140
  1,200,211
  1,269,139
  1,341,083
  1,416,209
  1,494,690
Working capital, $m
  17,832
  3,279
  3,782
  4,323
  4,902
  5,517
  6,167
  6,853
  7,572
  8,326
  9,113
  9,934
  10,789
  11,679
  12,605
  13,566
  14,566
  15,605
  16,684
  17,806
  18,973
  20,187
  21,451
  22,766
  24,136
  25,565
  27,054
  28,608
  30,229
  31,923
  33,692
Total debt, $m
  53,451
  58,902
  80,047
  102,793
  127,102
  152,939
  180,268
  209,060
  239,291
  270,947
  304,021
  338,517
  374,447
  411,835
  450,712
  491,122
  533,116
  576,754
  622,108
  669,255
  718,282
  769,283
  822,362
  877,628
  935,201
  995,205
  1,057,775
  1,123,051
  1,191,184
  1,262,329
  1,336,652
Total liabilities, $m
  132,298
  137,749
  158,894
  181,640
  205,949
  231,786
  259,115
  287,907
  318,138
  349,794
  382,868
  417,364
  453,294
  490,682
  529,559
  569,969
  611,963
  655,601
  700,955
  748,102
  797,129
  848,130
  901,209
  956,475
  1,014,048
  1,074,052
  1,136,622
  1,201,898
  1,270,031
  1,341,176
  1,415,499
Total equity, $m
  98,680
  97,318
  112,256
  128,326
  145,500
  163,753
  183,061
  203,402
  224,760
  247,124
  270,491
  294,861
  320,245
  346,659
  374,125
  402,674
  432,342
  463,172
  495,214
  528,523
  563,159
  599,191
  636,690
  675,735
  716,409
  758,801
  803,006
  849,123
  897,257
  947,520
  1,000,029
Total liabilities and equity, $m
  230,978
  235,067
  271,150
  309,966
  351,449
  395,539
  442,176
  491,309
  542,898
  596,918
  653,359
  712,225
  773,539
  837,341
  903,684
  972,643
  1,044,305
  1,118,773
  1,196,169
  1,276,625
  1,360,288
  1,447,321
  1,537,899
  1,632,210
  1,730,457
  1,832,853
  1,939,628
  2,051,021
  2,167,288
  2,288,696
  2,415,528
Debt-to-equity ratio
  0.542
  0.610
  0.710
  0.800
  0.870
  0.930
  0.980
  1.030
  1.060
  1.100
  1.120
  1.150
  1.170
  1.190
  1.200
  1.220
  1.230
  1.250
  1.260
  1.270
  1.280
  1.280
  1.290
  1.300
  1.310
  1.310
  1.320
  1.320
  1.330
  1.330
  1.340
Adjusted equity ratio
  0.392
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  6,196
  2,597
  2,665
  2,734
  2,804
  2,875
  2,946
  3,019
  3,093
  3,168
  3,245
  3,408
  3,489
  3,572
  3,658
  3,747
  3,839
  3,934
  4,034
  4,137
  4,246
  4,359
  4,477
  4,601
  4,730
  4,866
  5,008
  5,158
  5,314
  5,479
  5,651
Depreciation, amort., depletion, $m
  14,423
  16,835
  19,401
  22,162
  25,112
  28,248
  31,565
  35,060
  38,729
  42,571
  46,586
  50,657
  55,018
  59,556
  64,274
  69,179
  74,276
  79,572
  85,077
  90,799
  96,750
  102,940
  109,382
  116,090
  123,078
  130,361
  137,955
  145,878
  154,147
  162,783
  171,803
Funds from operations, $m
  15,402
  19,432
  22,067
  24,896
  27,916
  31,123
  34,512
  38,079
  41,822
  45,740
  49,831
  54,065
  58,507
  63,128
  67,932
  72,926
  78,114
  83,507
  89,111
  94,937
  100,996
  107,299
  113,859
  120,691
  127,808
  135,227
  142,964
  151,036
  159,462
  168,261
  177,455
Change in working capital, $m
  -1,119
  464
  503
  541
  579
  615
  650
  685
  720
  753
  787
  821
  855
  890
  925
  962
  1,000
  1,039
  1,080
  1,122
  1,167
  1,214
  1,263
  1,315
  1,370
  1,428
  1,489
  1,554
  1,622
  1,693
  1,769
Cash from operations, $m
  16,521
  18,967
  21,563
  24,355
  27,338
  30,508
  33,861
  37,394
  41,103
  44,986
  49,043
  53,244
  57,651
  62,238
  67,007
  71,964
  77,115
  82,468
  88,031
  93,815
  99,829
  106,085
  112,596
  119,376
  126,438
  133,799
  141,474
  149,482
  157,840
  166,568
  175,686
Maintenance CAPEX, $m
  0
  -14,346
  -16,719
  -19,285
  -22,046
  -24,997
  -28,133
  -31,450
  -34,944
  -38,613
  -42,456
  -46,470
  -50,657
  -55,018
  -59,556
  -64,274
  -69,179
  -74,276
  -79,572
  -85,077
  -90,799
  -96,750
  -102,940
  -109,382
  -116,090
  -123,078
  -130,361
  -137,955
  -145,878
  -154,147
  -162,783
New CAPEX, $m
  -18,106
  -20,647
  -22,327
  -24,018
  -25,670
  -27,282
  -28,858
  -30,403
  -31,923
  -33,427
  -34,925
  -36,426
  -37,940
  -39,479
  -41,052
  -42,670
  -44,343
  -46,080
  -47,891
  -49,785
  -51,770
  -53,855
  -56,048
  -58,358
  -60,793
  -63,361
  -66,070
  -68,928
  -71,944
  -75,125
  -78,482
Cash from investing activities, $m
  -17,653
  -34,993
  -39,046
  -43,303
  -47,716
  -52,279
  -56,991
  -61,853
  -66,867
  -72,040
  -77,381
  -82,896
  -88,597
  -94,497
  -100,608
  -106,944
  -113,522
  -120,356
  -127,463
  -134,862
  -142,569
  -150,605
  -158,988
  -167,740
  -176,883
  -186,439
  -196,431
  -206,883
  -217,822
  -229,272
  -241,265
Free cash flow, $m
  -1,132
  -16,026
  -17,483
  -18,949
  -20,378
  -21,771
  -23,129
  -24,458
  -25,764
  -27,054
  -28,337
  -29,652
  -30,946
  -32,259
  -33,601
  -34,981
  -36,407
  -37,888
  -39,432
  -41,047
  -42,740
  -44,520
  -46,392
  -48,365
  -50,446
  -52,641
  -54,957
  -57,402
  -59,982
  -62,705
  -65,579
Issuance/(repayment) of debt, $m
  4,894
  19,486
  21,145
  22,746
  24,310
  25,837
  27,329
  28,792
  30,231
  31,656
  33,074
  34,496
  35,930
  37,387
  38,877
  40,410
  41,994
  43,639
  45,354
  47,147
  49,027
  51,001
  53,079
  55,267
  57,573
  60,004
  62,570
  65,276
  68,132
  71,145
  74,323
Issuance/(repurchase) of shares, $m
  100
  11,110
  12,273
  13,335
  14,370
  15,378
  16,361
  17,322
  18,265
  19,196
  20,121
  20,962
  21,895
  22,842
  23,808
  24,802
  25,829
  26,896
  28,008
  29,171
  30,391
  31,673
  33,022
  34,444
  35,944
  37,526
  39,196
  40,959
  42,820
  44,784
  46,857
Cash from financing (excl. dividends), $m  
  6,193
  30,596
  33,418
  36,081
  38,680
  41,215
  43,690
  46,114
  48,496
  50,852
  53,195
  55,458
  57,825
  60,229
  62,685
  65,212
  67,823
  70,535
  73,362
  76,318
  79,418
  82,674
  86,101
  89,711
  93,517
  97,530
  101,766
  106,235
  110,952
  115,929
  121,180
Total cash flow (excl. dividends), $m
  3,989
  14,570
  15,934
  17,132
  18,302
  19,444
  20,561
  21,655
  22,732
  23,798
  24,859
  25,807
  26,880
  27,970
  29,085
  30,231
  31,416
  32,647
  33,930
  35,271
  36,677
  38,155
  39,709
  41,345
  43,071
  44,890
  46,809
  48,834
  50,970
  53,224
  55,602
Retained Cash Flow (-), $m
  -6,186
  -13,707
  -14,938
  -16,069
  -17,174
  -18,253
  -19,308
  -20,341
  -21,358
  -22,364
  -23,366
  -24,371
  -25,384
  -26,414
  -27,466
  -28,549
  -29,668
  -30,830
  -32,042
  -33,309
  -34,637
  -36,032
  -37,499
  -39,045
  -40,674
  -42,392
  -44,205
  -46,117
  -48,134
  -50,263
  -52,508
Prev. year cash balance distribution, $m
 
  15,069
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  15,933
  996
  1,063
  1,128
  1,191
  1,253
  1,314
  1,374
  1,433
  1,492
  1,436
  1,496
  1,556
  1,618
  1,682
  1,748
  1,816
  1,888
  1,963
  2,041
  2,123
  2,209
  2,301
  2,396
  2,498
  2,605
  2,717
  2,836
  2,961
  3,094
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  15,276
  912
  925
  928
  923
  910
  888
  859
  823
  782
  682
  638
  592
  543
  494
  444
  395
  348
  302
  259
  220
  183
  151
  122
  97
  76
  58
  44
  32
  23
Current shareholders' claim on cash, %
  100
  91.8
  84.6
  78.4
  72.9
  68.1
  63.8
  60.0
  56.6
  53.5
  50.7
  48.2
  45.9
  43.8
  41.9
  40.1
  38.5
  36.9
  35.5
  34.1
  32.8
  31.7
  30.5
  29.5
  28.4
  27.5
  26.6
  25.7
  24.8
  24.0
  23.3

Total S.A. (Total) is an oil and gas company. The Company has three segments: an Upstream segment, including the activities of the exploration and production of hydrocarbons, and the activities of gas and power; a Refining & Chemicals segment constituting an industrial hub consisting of the activities of refining, petrochemicals and specialty chemicals, and also includes the activities of oil trading and shipping, and a Marketing & Services segment, including the activities of supply and marketing in the field of petroleum products, as well as the activity of New Energies. Its Corporate segment includes holdings operating and financial activities. The Company operates in the renewable energies and power generation sectors. It is engaged in various sectors of oil and gas industry, including upstream (hydrocarbon exploration, development and production) and downstream (refining, petrochemicals, specialty chemicals, trading and shipping of crude oil and petroleum products and marketing).

FINANCIAL RATIOS  of  Total ADR (TOT)

Valuation Ratios
P/E Ratio 22.8
Price to Sales 1.1
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow 8.6
Price to Free Cash Flow -89.1
Growth Rates
Sales Growth Rate -10.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -28%
Cap. Spend. - 3 Yr. Gr. Rate -9.5%
Financial Strength
Quick Ratio 2
Current Ratio 0
LT Debt to Equity 39.9%
Total Debt to Equity 54.2%
Interest Coverage 8
Management Effectiveness
Return On Assets 3.1%
Ret/ On Assets - 3 Yr. Avg. 2.5%
Return On Total Capital 4.1%
Ret/ On T. Cap. - 3 Yr. Avg. 3.5%
Return On Equity 6.5%
Return On Equity - 3 Yr. Avg. 5.5%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 34.3%
Gross Margin - 3 Yr. Avg. 32.4%
EBITDA Margin 17.7%
EBITDA Margin - 3 Yr. Avg. 17.5%
Operating Margin 4.5%
Oper. Margin - 3 Yr. Avg. 4.3%
Pre-Tax Margin 5.6%
Pre-Tax Margin - 3 Yr. Avg. 5.4%
Net Profit Margin 4.8%
Net Profit Margin - 3 Yr. Avg. 3.5%
Effective Tax Rate 13.5%
Eff/ Tax Rate - 3 Yr. Avg. 35.4%
Payout Ratio 42.9%

TOT stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TOT stock intrinsic value calculation we used $127925 million for the last fiscal year's total revenue generated by Total ADR. The default revenue input number comes from 2016 income statement of Total ADR. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our TOT stock valuation model: a) initial revenue growth rate of 16.5% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for TOT is calculated based on our internal credit rating of Total ADR, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Total ADR.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of TOT stock the variable cost ratio is equal to 96.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for TOT stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Total ADR.

Corporate tax rate of 27% is the nominal tax rate for Total ADR. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the TOT stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for TOT are equal to 97.6%.

Life of production assets of 8.7 years is the average useful life of capital assets used in Total ADR operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for TOT is equal to 2.2%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $98680 million for Total ADR - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 2516.82 million for Total ADR is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Total ADR at the current share price and the inputted number of shares is $146.9 billion.

RELATED COMPANIES Price Int.Val. Rating
CVX Chevron 112.59 18.50  str.sell
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XOM Exxon Mobil 77.53 22.27  str.sell
E ENI ADR 34.24 7.48  str.sell
SSL Sasol ADR 34.29 10.16  str.sell
STO Statoil ADR 23.18 5.44  str.sell
PTR PetroChina ADR 72.11 13.38  str.sell

COMPANY NEWS

▶ [$$] What's Behind Bridgewater's $22 Billion Short   [Feb-24-18 12:01AM  Barrons.com]
▶ Prepare to pay more at the gas pump   [Feb-22-18 01:34PM  Yahoo Finance Video]
▶ Big Oil Earnings: The Good, the Bad, and the Ugly   [Feb-17-18 11:00AM  Motley Fool]
▶ Total Demonstrates Strength of Operations   [Feb-16-18 07:00AM  Morningstar]
▶ [$$] Big Oil Is Rewarding Investors Again   [Feb-08-18 01:35PM  The Wall Street Journal]
▶ [$$] Total's Net Profit Soars   [03:05AM  The Wall Street Journal]
▶ Why 2017 Was a Year to Remember for Suncor Energy Inc.   [Feb-01-18 05:18PM  Motley Fool]
▶ [$$] Total Makes Major Discovery in Gulf of Mexico   [Jan-31-18 02:51AM  The Wall Street Journal]
▶ Analysts Give Mixed Signals on Chevron Stock   [Jan-26-18 10:33AM  Market Realist]
▶ 3 Top Stocks in Energy   [06:05AM  Motley Fool]
▶ Chevron Stock Nears New Highs: A 4Q17 Preview   [Jan-25-18 04:40PM  Market Realist]
▶ Noble Corporations Latest Fleet Status Report   [02:50PM  Market Realist]
▶ How ExxonMobil Stock Has Performed Lately   [Jan-24-18 02:15PM  Market Realist]
▶ Could ExxonMobils Earnings Rise in 4Q17?   [11:10AM  Market Realist]
▶ Royal Dutch Shell Joining the Renewable Energy Bandwagon   [Jan-20-18 06:46AM  Motley Fool]
▶ Has Shell Stock Risen before Its 4Q17 Earnings?   [Jan-18-18 01:20PM  Market Realist]
▶ What to Expect from Shells 4Q17 Earnings   [11:48AM  Market Realist]
▶ Totals Dividend Yield: 4th Place in the Top 8   [Jan-17-18 09:01AM  Market Realist]
▶ Shells Dividend Yield: One of the Best   [Jan-16-18 03:25PM  Market Realist]
▶ Analyst Recommendations for ExxonMobil: Why Hold and Sell?   [Jan-10-18 10:30AM  Market Realist]
▶ How Has ExxonMobil Stock Performed Compared to SPY?   [Jan-09-18 11:55AM  Market Realist]
▶ 3 Dividend Stocks With Better Yields Than Chevron   [Jan-08-18 02:54PM  Motley Fool]
▶ This Is the Best Big Oil Stock to Buy in 2018   [Jan-07-18 08:05AM  Motley Fool]
▶ Can Norway Survive Without Big Oil?   [Jan-03-18 05:00PM  Oilprice.com]
▶ The 10 Energy Stories That Defined 2017   [Jan-02-18 06:00PM  Oilprice.com]
▶ Chevron Corporation a Rare Energy Dividend Aristocrat   [Dec-28-17 12:10PM  InvestorPlace]
▶ Oil Giants Are Increasingly Focused On Sustainability   [Dec-27-17 05:00PM  Oilprice.com]
▶ Oil Market On Edge Following Outages   [Dec-19-17 03:00PM  Oilprice.com]
▶ IEA Dashes Bullish Sentiment In Oil   [Dec-15-17 03:30PM  Oilprice.com]
▶ Why Most Analysts Recommend a Hold for Total   [Dec-14-17 12:32PM  Market Realist]
▶ The Solar Tech That Is Making Cleaner Oil   [Dec-07-17 04:00PM  Oilprice.com]
▶ The Biggest Oil Producers Flying Under The Radar   [Dec-03-17 01:00PM  Oilprice.com]
▶ BP Stock Is as Good a Buy as It Has Been in Years   [Nov-30-17 07:54AM  InvestorPlace]
▶ 5 Great Oil Stocks to Trade Ahead of Big OPEC Meeting   [Nov-27-17 02:42PM  TheStreet.com]
▶ How to Play This Week's OPEC Meeting   [02:30PM  TheStreet.com]
▶ Norways $35B Oil Stock Dump Could Hurt The Industry   [Nov-22-17 05:00PM  Oilprice.com]
▶ Bankrupt Venezuela Asks Partners For Free Oil   [Nov-21-17 04:00PM  Oilprice.com]
▶ Can Oil Majors Continue To Beat Estimates?   [Nov-18-17 05:00PM  Oilprice.com]
▶ Big Oil Bounces Back as Crude Hits $50 a Barrel   [Nov-13-17 01:12PM  Zacks]
▶ Why These 2 Big Oil Stocks Jumped in October   [Nov-10-17 12:42PM  Motley Fool]
▶ Total makes $1.5B deal to buy Engies LNG business, including Cameron LNG stake   [Nov-09-17 09:50AM  American City Business Journals]
▶ [$$] Total Expands Natural Gas Business with $2 Billion Deal   [Nov-08-17 03:42PM  The Wall Street Journal]
▶ Total Sees IBD RS Rating Climb To 71   [03:00AM  Investor's Business Daily]
▶ [$$] Pollution Rule Is Boon for Richest Refiners, Blow for Weakest   [Nov-07-17 10:45AM  The Wall Street Journal]
▶ Oil & Gas Industry Outlook - November 2017   [Nov-06-17 04:45PM  Zacks]
▶ ETFs with exposure to Total SA : November 3, 2017   [Nov-03-17 12:37PM  Capital Cube]
▶ Big Oil CEO Slams Saudi Energy Reform   [11:30AM  Oilprice.com]
Financial statements of TOT
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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