Intrinsic value of Total ADR - TOT

Previous Close

$55.67

  Intrinsic Value

$9.60

stock screener

  Rating & Target

str. sell

-83%

Previous close

$55.67

 
Intrinsic value

$9.60

 
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

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 141.4

 

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
  8.70
  8.33
  8.00
  7.70
  7.43
  7.18
  6.97
  6.77
  6.59
  6.43
  6.29
  6.16
  6.04
  5.94
  5.85
  5.76
  5.69
  5.62
  5.56
  5.50
  5.45
  5.40
  5.36
  5.33
  5.30
  5.27
  5.24
  5.22
  5.19
  5.17
Revenue, $m
  127,925
  139,054
  150,638
  162,684
  175,207
  188,220
  201,743
  215,797
  230,406
  245,596
  261,397
  277,839
  294,957
  312,787
  331,368
  350,741
  370,950
  392,041
  414,062
  437,065
  461,102
  486,232
  512,512
  540,005
  568,776
  598,893
  630,429
  663,457
  698,058
  734,312
  772,308
Variable operating expenses, $m
 
  134,456
  145,646
  157,284
  169,382
  181,954
  195,019
  208,597
  222,710
  237,385
  252,650
  268,419
  284,956
  302,182
  320,133
  338,849
  358,373
  378,749
  400,024
  422,246
  445,469
  469,746
  495,135
  521,696
  549,492
  578,588
  609,055
  640,963
  674,391
  709,416
  746,123
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
  134,456
  145,646
  157,284
  169,382
  181,954
  195,019
  208,597
  222,710
  237,385
  252,650
  268,419
  284,956
  302,182
  320,133
  338,849
  358,373
  378,749
  400,024
  422,246
  445,469
  469,746
  495,135
  521,696
  549,492
  578,588
  609,055
  640,963
  674,391
  709,416
  746,123
Operating income, $m
  5,731
  4,599
  4,992
  5,400
  5,825
  6,266
  6,724
  7,201
  7,696
  8,211
  8,747
  9,420
  10,000
  10,605
  11,235
  11,892
  12,577
  13,292
  14,039
  14,818
  15,633
  16,485
  17,376
  18,309
  19,284
  20,305
  21,374
  22,494
  23,667
  24,896
  26,185
EBITDA, $m
  20,154
  20,314
  22,006
  23,766
  25,596
  27,497
  29,472
  31,525
  33,660
  35,879
  38,187
  40,589
  43,090
  45,695
  48,409
  51,239
  54,191
  57,273
  60,490
  63,850
  67,362
  71,033
  74,872
  78,888
  83,092
  87,491
  92,098
  96,923
  101,978
  107,274
  112,825
Interest expense (income), $m
  1,028
  1,380
  1,739
  2,114
  2,503
  2,908
  3,329
  3,767
  4,221
  4,694
  5,185
  5,697
  6,228
  6,782
  7,359
  7,960
  8,587
  9,241
  9,923
  10,635
  11,379
  12,157
  12,970
  13,820
  14,710
  15,640
  16,615
  17,635
  18,703
  19,823
  20,995
Earnings before tax, $m
  7,176
  3,219
  3,253
  3,287
  3,321
  3,357
  3,395
  3,434
  3,475
  3,517
  3,561
  3,723
  3,772
  3,823
  3,876
  3,932
  3,990
  4,051
  4,116
  4,183
  4,254
  4,328
  4,406
  4,488
  4,574
  4,665
  4,760
  4,859
  4,964
  5,074
  5,189
Tax expense, $m
  970
  869
  878
  887
  897
  907
  917
  927
  938
  950
  962
  1,005
  1,018
  1,032
  1,046
  1,062
  1,077
  1,094
  1,111
  1,129
  1,149
  1,169
  1,190
  1,212
  1,235
  1,259
  1,285
  1,312
  1,340
  1,370
  1,401
Net income, $m
  6,196
  2,350
  2,375
  2,399
  2,425
  2,451
  2,478
  2,507
  2,537
  2,567
  2,600
  2,718
  2,753
  2,791
  2,829
  2,870
  2,913
  2,957
  3,004
  3,054
  3,105
  3,160
  3,217
  3,277
  3,339
  3,405
  3,475
  3,547
  3,624
  3,704
  3,788

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
  219,329
  237,599
  256,600
  276,351
  296,877
  318,207
  340,375
  363,417
  387,376
  412,298
  438,232
  465,231
  493,355
  522,662
  553,220
  585,095
  618,361
  653,095
  689,377
  727,291
  766,927
  808,378
  851,743
  897,123
  944,627
  994,367
  1,046,463
  1,101,038
  1,158,221
  1,218,151
Adjusted assets (=assets-cash), $m
  201,874
  219,329
  237,599
  256,600
  276,351
  296,877
  318,207
  340,375
  363,417
  387,376
  412,298
  438,232
  465,231
  493,355
  522,662
  553,220
  585,095
  618,361
  653,095
  689,377
  727,291
  766,927
  808,378
  851,743
  897,123
  944,627
  994,367
  1,046,463
  1,101,038
  1,158,221
  1,218,151
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
  135,717
  147,022
  158,780
  171,002
  183,703
  196,902
  210,618
  224,877
  239,702
  255,123
  271,171
  287,878
  305,280
  323,415
  342,323
  362,047
  382,632
  404,125
  426,575
  450,036
  474,562
  500,212
  527,045
  555,125
  584,520
  615,299
  647,534
  681,304
  716,689
  753,772
Working capital, $m
  17,832
  3,059
  3,314
  3,579
  3,855
  4,141
  4,438
  4,748
  5,069
  5,403
  5,751
  6,112
  6,489
  6,881
  7,290
  7,716
  8,161
  8,625
  9,109
  9,615
  10,144
  10,697
  11,275
  11,880
  12,513
  13,176
  13,869
  14,596
  15,357
  16,155
  16,991
Total debt, $m
  53,451
  49,680
  60,386
  71,520
  83,095
  95,123
  107,622
  120,612
  134,115
  148,155
  162,759
  177,957
  193,779
  210,259
  227,433
  245,340
  264,019
  283,513
  303,867
  325,128
  347,346
  370,572
  394,863
  420,274
  446,867
  474,704
  503,852
  534,380
  566,361
  599,871
  634,989
Total liabilities, $m
  132,298
  128,527
  139,233
  150,367
  161,942
  173,970
  186,469
  199,459
  212,962
  227,002
  241,606
  256,804
  272,626
  289,106
  306,280
  324,187
  342,866
  362,360
  382,714
  403,975
  426,193
  449,419
  473,710
  499,121
  525,714
  553,551
  582,699
  613,227
  645,208
  678,718
  713,836
Total equity, $m
  98,680
  90,802
  98,366
  106,232
  114,409
  122,907
  131,738
  140,915
  150,455
  160,374
  170,691
  181,428
  192,606
  204,249
  216,382
  229,033
  242,229
  256,002
  270,381
  285,402
  301,098
  317,508
  334,669
  352,622
  371,409
  391,076
  411,668
  433,236
  455,830
  479,504
  504,315
Total liabilities and equity, $m
  230,978
  219,329
  237,599
  256,599
  276,351
  296,877
  318,207
  340,374
  363,417
  387,376
  412,297
  438,232
  465,232
  493,355
  522,662
  553,220
  585,095
  618,362
  653,095
  689,377
  727,291
  766,927
  808,379
  851,743
  897,123
  944,627
  994,367
  1,046,463
  1,101,038
  1,158,222
  1,218,151
Debt-to-equity ratio
  0.542
  0.550
  0.610
  0.670
  0.730
  0.770
  0.820
  0.860
  0.890
  0.920
  0.950
  0.980
  1.010
  1.030
  1.050
  1.070
  1.090
  1.110
  1.120
  1.140
  1.150
  1.170
  1.180
  1.190
  1.200
  1.210
  1.220
  1.230
  1.240
  1.250
  1.260
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
  2,350
  2,375
  2,399
  2,425
  2,451
  2,478
  2,507
  2,537
  2,567
  2,600
  2,718
  2,753
  2,791
  2,829
  2,870
  2,913
  2,957
  3,004
  3,054
  3,105
  3,160
  3,217
  3,277
  3,339
  3,405
  3,475
  3,547
  3,624
  3,704
  3,788
Depreciation, amort., depletion, $m
  14,423
  15,715
  17,015
  18,366
  19,771
  21,231
  22,748
  24,325
  25,964
  27,668
  29,440
  31,169
  33,089
  35,090
  37,174
  39,348
  41,615
  43,981
  46,451
  49,032
  51,728
  54,547
  57,496
  60,580
  63,808
  67,186
  70,724
  74,429
  78,311
  82,378
  86,641
Funds from operations, $m
  15,402
  18,065
  19,389
  20,765
  22,196
  23,682
  25,226
  26,832
  28,500
  30,235
  32,040
  33,887
  35,843
  37,880
  40,003
  42,218
  44,527
  46,938
  49,455
  52,085
  54,834
  57,707
  60,712
  63,856
  67,147
  70,592
  74,199
  77,977
  81,935
  86,082
  90,429
Change in working capital, $m
  -1,119
  245
  255
  265
  275
  286
  298
  309
  321
  334
  348
  362
  377
  392
  409
  426
  445
  464
  484
  506
  529
  553
  578
  605
  633
  663
  694
  727
  761
  798
  836
Cash from operations, $m
  16,521
  17,821
  19,135
  20,500
  21,920
  23,396
  24,929
  26,522
  28,179
  29,901
  31,692
  33,525
  35,466
  37,488
  39,595
  41,791
  44,083
  46,474
  48,971
  51,579
  54,305
  57,154
  60,134
  63,252
  66,514
  69,929
  73,505
  77,250
  81,173
  85,284
  89,593
Maintenance CAPEX, $m
  0
  -14,346
  -15,600
  -16,899
  -18,251
  -19,655
  -21,115
  -22,632
  -24,209
  -25,848
  -27,552
  -29,325
  -31,169
  -33,089
  -35,090
  -37,174
  -39,348
  -41,615
  -43,981
  -46,451
  -49,032
  -51,728
  -54,547
  -57,496
  -60,580
  -63,808
  -67,186
  -70,724
  -74,429
  -78,311
  -82,378
New CAPEX, $m
  -18,106
  -10,909
  -11,305
  -11,757
  -12,222
  -12,701
  -13,199
  -13,717
  -14,258
  -14,826
  -15,421
  -16,048
  -16,707
  -17,402
  -18,135
  -18,908
  -19,724
  -20,585
  -21,493
  -22,451
  -23,461
  -24,526
  -25,649
  -26,833
  -28,081
  -29,395
  -30,779
  -32,236
  -33,770
  -35,384
  -37,083
Cash from investing activities, $m
  -17,653
  -25,255
  -26,905
  -28,656
  -30,473
  -32,356
  -34,314
  -36,349
  -38,467
  -40,674
  -42,973
  -45,373
  -47,876
  -50,491
  -53,225
  -56,082
  -59,072
  -62,200
  -65,474
  -68,902
  -72,493
  -76,254
  -80,196
  -84,329
  -88,661
  -93,203
  -97,965
  -102,960
  -108,199
  -113,695
  -119,461
Free cash flow, $m
  -1,132
  -7,434
  -7,770
  -8,156
  -8,552
  -8,961
  -9,385
  -9,827
  -10,289
  -10,772
  -11,281
  -11,847
  -12,410
  -13,004
  -13,630
  -14,291
  -14,989
  -15,725
  -16,502
  -17,322
  -18,188
  -19,100
  -20,063
  -21,077
  -22,147
  -23,273
  -24,460
  -25,710
  -27,026
  -28,411
  -29,869
Issuance/(repayment) of debt, $m
  4,894
  10,264
  10,706
  11,134
  11,574
  12,028
  12,499
  12,990
  13,503
  14,040
  14,604
  15,197
  15,822
  16,480
  17,174
  17,906
  18,679
  19,494
  20,354
  21,261
  22,218
  23,227
  24,290
  25,412
  26,593
  27,837
  29,148
  30,528
  31,981
  33,510
  35,119
Issuance/(repurchase) of shares, $m
  100
  4,841
  5,189
  5,467
  5,752
  6,047
  6,352
  6,670
  7,003
  7,352
  7,718
  8,019
  8,424
  8,852
  9,304
  9,781
  10,284
  10,815
  11,375
  11,967
  12,591
  13,250
  13,944
  14,676
  15,448
  16,261
  17,118
  18,020
  18,970
  19,970
  21,023
Cash from financing (excl. dividends), $m  
  6,193
  15,105
  15,895
  16,601
  17,326
  18,075
  18,851
  19,660
  20,506
  21,392
  22,322
  23,216
  24,246
  25,332
  26,478
  27,687
  28,963
  30,309
  31,729
  33,228
  34,809
  36,477
  38,234
  40,088
  42,041
  44,098
  46,266
  48,548
  50,951
  53,480
  56,142
Total cash flow (excl. dividends), $m
  3,989
  7,671
  8,125
  8,446
  8,775
  9,114
  9,467
  9,834
  10,217
  10,619
  11,041
  11,369
  11,837
  12,329
  12,848
  13,396
  13,974
  14,584
  15,227
  15,906
  16,621
  17,376
  18,172
  19,011
  19,894
  20,825
  21,806
  22,838
  23,925
  25,069
  26,273
Retained Cash Flow (-), $m
  -6,186
  -7,191
  -7,564
  -7,866
  -8,177
  -8,498
  -8,831
  -9,177
  -9,540
  -9,919
  -10,318
  -10,737
  -11,178
  -11,643
  -12,133
  -12,651
  -13,196
  -13,772
  -14,380
  -15,021
  -15,697
  -16,409
  -17,161
  -17,953
  -18,787
  -19,667
  -20,593
  -21,568
  -22,594
  -23,674
  -24,811
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
 
  15,549
  561
  579
  597
  616
  636
  656
  678
  700
  724
  633
  659
  686
  715
  745
  778
  811
  847
  885
  925
  967
  1,011
  1,058
  1,107
  1,159
  1,213
  1,271
  1,331
  1,395
  1,462
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
 
  14,908
  514
  504
  492
  478
  462
  443
  424
  402
  379
  300
  281
  261
  240
  219
  198
  177
  156
  136
  118
  100
  84
  69
  56
  45
  35
  27
  21
  15
  11
Current shareholders' claim on cash, %
  100
  96.1
  92.4
  89.0
  85.7
  82.7
  79.8
  77.1
  74.5
  72.0
  69.7
  67.5
  65.4
  63.3
  61.4
  59.5
  57.7
  56.0
  54.3
  52.7
  51.1
  49.6
  48.1
  46.7
  45.3
  43.9
  42.6
  41.4
  40.1
  39.0
  37.8

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 21.7
Price to Sales 1.1
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow 8.2
Price to Free Cash Flow -85
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 8.7% 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 2540.44 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 $141.4 billion.

RELATED COMPANIES Price Int.Val. Rating
CVX Chevron 120.42 18.60  str.sell
BP BP ADR 39.93 6.36  str.sell
XOM Exxon Mobil 83.03 9.87  str.sell
E ENI ADR 32.95 7.49  str.sell
SSL Sasol ADR 31.11 10.24  str.sell
STO Statoil ADR 20.21 16.36  hold
PTR PetroChina ADR 66.93 12.46  str.sell

COMPANY NEWS

▶ 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]
▶ Russian LNG Unfazed By U.S. Sanctions   [Nov-02-17 06:00PM  Oilprice.com]
▶ Are Higher Oil Prices Here To Stay?   [04:00PM  Oilprice.com]
▶ Big Oil Urges OPEC: Keep Floor Under Oil Prices   [Oct-30-17 08:00PM  Oilprice.com]
▶ [$$] Oil Giants' Profits Soar, but Investors Aren't Sold   [Oct-27-17 02:28PM  The Wall Street Journal]
▶ [$$] Total's Renewables Bet Disappoints in Third Quarter   [10:17AM  The Wall Street Journal]
▶ Total SA to Host Earnings Call   [06:30AM  ACCESSWIRE]
▶ [$$] Big Oils Suddenly Popular Measure for Success: Break-Even Oil Price   [Oct-26-17 11:44PM  The Wall Street Journal]
▶ [$$] Amid Low Prices, Oil Giants Gush About Breaking Even   [09:35AM  The Wall Street Journal]
▶ Your Pre-Earnings Price Forecast for BP Stock   [07:37AM  Market Realist]
▶ Norway Unfazed By Peak Oil Concerns   [Oct-23-17 07:00PM  Oilprice.com]
▶ Will Demand For Offshore Rigs Ever Recover?   [Oct-22-17 01:00PM  Oilprice.com]
▶ France's Solar Market Dominated by Total and SunPower   [Oct-21-17 10:10AM  Motley Fool]
▶ A New Oil Crisis Is Developing In The Middle East   [Oct-19-17 05:00PM  Oilprice.com]
▶ The Natural Gas Market Is Set To Boom   [Oct-17-17 07:00PM  Oilprice.com]
▶ Energy Leads Wall Street's Gains as Crude Hovers Around $52   [Oct-16-17 10:55AM  TheStreet.com]
▶ TOTAL: Main Indicators   [02:28AM  Business Wire]
▶ Aggressive OPEC Pushes Oil Prices Up   [Oct-10-17 03:00PM  Oilprice.com]
▶ 5 Dividend Stocks That Pay Out Over $2.5 Billion a Year   [Oct-08-17 11:22AM  Motley Fool]
▶ The Natural Gas Giant To Challenge Israel   [Oct-04-17 01:00PM  Oilprice.com]
▶ Oil Markets Fear An OPEC Compliance Collapse   [Oct-03-17 03:00PM  Oilprice.com]
▶ Drillers Decline Trumps Marine Sanctuary Offer   [Oct-02-17 06:00PM  Oilprice.com]
▶ ExxonMobil Dethroned As Top Energy Company   [Oct-01-17 07:00PM  Oilprice.com]
▶ Top Oil Stocks Near Buy Zones Ahead Of Key Supply, Output Report   [Sep-27-17 04:06PM  Investor's Business Daily]
▶ Is This The End Of U.S. Dominance In Global Energy?   [Sep-25-17 03:00PM  Oilprice.com]
▶ Is Big Oil Going Green?   [Sep-20-17 05:00PM  Oilprice.com]
▶ Analyst Ratings for Petrobas: Ranks 8th in Top 10   [Sep-19-17 01:07PM  Market Realist]
▶ Iran Looks To Ramp Up Production   [10:30AM  Oilprice.com]
▶ The Worlds Largest Offshore Oil Field Is Back In Action   [Sep-18-17 06:00PM  Oilprice.com]
▶ These 2 Big Oil Stocks Are Ridiculously Cheap...Again   [Sep-15-17 06:02AM  Motley Fool]
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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