Intrinsic value of Total ADR - TOT

Previous Close

$54.33

  Intrinsic Value

$197.50

stock screener

  Rating & Target

str. buy

+264%

Previous close

$54.33

 
Intrinsic value

$197.50

 
Up/down potential

+264%

 
Rating

str. buy

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 0001), $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 10.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  16.60
  15.44
  14.40
  13.46
  12.61
  11.85
  11.16
  10.55
  9.99
  9.49
  9.04
  8.64
  8.28
  7.95
  7.65
  7.39
  7.15
  6.93
  6.74
  6.57
  6.41
  6.27
  6.14
  6.03
  5.93
  5.83
  5.75
  5.67
  5.61
  5.55
Revenue, $m
  173,849
  200,692
  229,583
  260,477
  293,325
  328,083
  364,713
  403,184
  443,475
  485,579
  529,498
  575,248
  622,857
  672,365
  723,826
  777,304
  832,878
  890,634
  950,673
  1,013,103
  1,078,046
  1,145,632
  1,216,000
  1,289,302
  1,365,697
  1,445,355
  1,528,455
  1,615,188
  1,705,753
  1,800,360
Variable operating expenses, $m
  154,832
  178,512
  204,001
  231,256
  260,235
  290,899
  323,214
  357,154
  392,700
  429,845
  467,132
  507,493
  549,495
  593,171
  638,571
  685,751
  734,779
  785,732
  838,699
  893,777
  951,070
  1,010,695
  1,072,776
  1,137,444
  1,204,840
  1,275,116
  1,348,428
  1,424,946
  1,504,843
  1,588,308
Fixed operating expenses, $m
  9,815
  10,031
  10,252
  10,477
  10,708
  10,944
  11,184
  11,430
  11,682
  11,939
  12,201
  12,470
  12,744
  13,025
  13,311
  13,604
  13,903
  14,209
  14,522
  14,841
  15,168
  15,501
  15,842
  16,191
  16,547
  16,911
  17,283
  17,664
  18,052
  18,449
Total operating expenses, $m
  164,647
  188,543
  214,253
  241,733
  270,943
  301,843
  334,398
  368,584
  404,382
  441,784
  479,333
  519,963
  562,239
  606,196
  651,882
  699,355
  748,682
  799,941
  853,221
  908,618
  966,238
  1,026,196
  1,088,618
  1,153,635
  1,221,387
  1,292,027
  1,365,711
  1,442,610
  1,522,895
  1,606,757
Operating income, $m
  9,203
  12,148
  15,331
  18,744
  22,382
  26,241
  30,314
  34,599
  39,094
  43,796
  50,165
  55,285
  60,618
  66,169
  71,944
  77,950
  84,196
  90,693
  97,452
  104,486
  111,808
  119,435
  127,382
  135,667
  144,309
  153,328
  162,743
  172,579
  182,857
  193,603
EBITDA, $m
  28,801
  34,548
  40,744
  47,381
  54,447
  61,932
  69,828
  78,127
  86,825
  95,921
  105,414
  115,307
  125,608
  136,325
  147,469
  159,055
  171,100
  183,623
  196,647
  210,195
  224,294
  238,973
  254,262
  270,196
  286,809
  304,139
  322,226
  341,111
  360,839
  381,457
Interest expense (income), $m
  1,028
  2,845
  4,010
  5,282
  6,652
  8,117
  9,675
  11,323
  13,059
  14,884
  16,794
  18,790
  20,873
  23,042
  25,299
  27,647
  30,087
  32,622
  35,257
  37,996
  40,843
  43,803
  46,882
  50,086
  53,423
  56,899
  60,521
  64,298
  68,238
  72,350
  76,644
Earnings before tax, $m
  6,358
  8,139
  10,048
  12,091
  14,265
  16,566
  18,991
  21,540
  24,210
  27,002
  31,374
  34,412
  37,576
  40,870
  44,297
  47,863
  51,574
  55,435
  59,456
  63,643
  68,006
  72,553
  77,296
  82,244
  87,411
  92,807
  98,446
  104,341
  110,507
  116,959
Tax expense, $m
  1,717
  2,197
  2,713
  3,265
  3,852
  4,473
  5,128
  5,816
  6,537
  7,290
  8,471
  9,291
  10,146
  11,035
  11,960
  12,923
  13,925
  14,968
  16,053
  17,184
  18,362
  19,589
  20,870
  22,206
  23,601
  25,058
  26,580
  28,172
  29,837
  31,579
Net income, $m
  4,641
  5,941
  7,335
  8,827
  10,413
  12,093
  13,864
  15,724
  17,673
  19,711
  22,903
  25,121
  27,431
  29,835
  32,337
  34,940
  37,649
  40,468
  43,403
  46,459
  49,644
  52,964
  56,426
  60,038
  63,810
  67,749
  71,865
  76,169
  80,670
  85,380

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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 assets, $m
  282,682
  326,328
  373,306
  423,540
  476,951
  533,469
  593,029
  655,583
  721,098
  789,560
  860,973
  935,363
  1,012,775
  1,093,276
  1,176,952
  1,263,910
  1,354,273
  1,448,186
  1,545,809
  1,647,322
  1,752,921
  1,862,816
  1,977,236
  2,096,426
  2,220,645
  2,350,170
  2,485,293
  2,626,322
  2,773,582
  2,927,415
Adjusted assets (=assets-cash), $m
  282,682
  326,328
  373,306
  423,540
  476,951
  533,469
  593,029
  655,583
  721,098
  789,560
  860,973
  935,363
  1,012,775
  1,093,276
  1,176,952
  1,263,910
  1,354,273
  1,448,186
  1,545,809
  1,647,322
  1,752,921
  1,862,816
  1,977,236
  2,096,426
  2,220,645
  2,350,170
  2,485,293
  2,626,322
  2,773,582
  2,927,415
Revenue / Adjusted assets
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
  0.615
Average production assets, $m
  137,863
  159,149
  182,060
  206,558
  232,607
  260,170
  289,217
  319,725
  351,676
  385,064
  419,892
  456,172
  493,925
  533,185
  573,994
  616,402
  660,472
  706,273
  753,883
  803,391
  854,891
  908,486
  964,288
  1,022,416
  1,082,998
  1,146,166
  1,212,065
  1,280,844
  1,352,662
  1,427,686
Working capital, $m
  3,477
  4,014
  4,592
  5,210
  5,867
  6,562
  7,294
  8,064
  8,870
  9,712
  10,590
  11,505
  12,457
  13,447
  14,477
  15,546
  16,658
  17,813
  19,013
  20,262
  21,561
  22,913
  24,320
  25,786
  27,314
  28,907
  30,569
  32,304
  34,115
  36,007
Total debt, $m
  74,254
  97,823
  123,191
  150,318
  179,160
  209,679
  241,842
  275,621
  310,999
  347,968
  386,531
  426,702
  468,505
  511,975
  557,160
  604,117
  652,913
  703,626
  756,343
  811,160
  868,183
  927,527
  989,314
  1,053,676
  1,120,754
  1,190,698
  1,263,664
  1,339,820
  1,419,340
  1,502,410
Total liabilities, $m
  152,648
  176,217
  201,585
  228,712
  257,554
  288,073
  320,236
  354,015
  389,393
  426,362
  464,925
  505,096
  546,899
  590,369
  635,554
  682,511
  731,307
  782,020
  834,737
  889,554
  946,577
  1,005,921
  1,067,708
  1,132,070
  1,199,148
  1,269,092
  1,342,058
  1,418,214
  1,497,734
  1,580,804
Total equity, $m
  130,034
  150,111
  171,721
  194,828
  219,398
  245,396
  272,793
  301,568
  331,705
  363,198
  396,048
  430,267
  465,877
  502,907
  541,398
  581,398
  622,966
  666,165
  711,072
  757,768
  806,343
  856,895
  909,529
  964,356
  1,021,497
  1,081,078
  1,143,235
  1,208,108
  1,275,848
  1,346,611
Total liabilities and equity, $m
  282,682
  326,328
  373,306
  423,540
  476,952
  533,469
  593,029
  655,583
  721,098
  789,560
  860,973
  935,363
  1,012,776
  1,093,276
  1,176,952
  1,263,909
  1,354,273
  1,448,185
  1,545,809
  1,647,322
  1,752,920
  1,862,816
  1,977,237
  2,096,426
  2,220,645
  2,350,170
  2,485,293
  2,626,322
  2,773,582
  2,927,415
Debt-to-equity ratio
  0.570
  0.650
  0.720
  0.770
  0.820
  0.850
  0.890
  0.910
  0.940
  0.960
  0.980
  0.990
  1.010
  1.020
  1.030
  1.040
  1.050
  1.060
  1.060
  1.070
  1.080
  1.080
  1.090
  1.090
  1.100
  1.100
  1.110
  1.110
  1.110
  1.120
Adjusted equity ratio
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  4,641
  5,941
  7,335
  8,827
  10,413
  12,093
  13,864
  15,724
  17,673
  19,711
  22,903
  25,121
  27,431
  29,835
  32,337
  34,940
  37,649
  40,468
  43,403
  46,459
  49,644
  52,964
  56,426
  60,038
  63,810
  67,749
  71,865
  76,169
  80,670
  85,380
Depreciation, amort., depletion, $m
  19,599
  22,399
  25,414
  28,637
  32,065
  35,692
  39,514
  43,528
  47,732
  52,125
  55,249
  60,023
  64,990
  70,156
  75,526
  81,106
  86,904
  92,931
  99,195
  105,709
  112,486
  119,538
  126,880
  134,528
  142,500
  150,811
  159,482
  168,532
  177,982
  187,853
Funds from operations, $m
  24,240
  28,340
  32,749
  37,464
  42,478
  47,785
  53,377
  59,252
  65,405
  71,836
  78,152
  85,143
  92,421
  99,991
  107,862
  116,046
  124,553
  133,399
  142,598
  152,169
  162,130
  172,501
  183,306
  194,567
  206,310
  218,560
  231,348
  244,701
  258,652
  273,233
Change in working capital, $m
  495
  537
  578
  618
  657
  695
  733
  769
  806
  842
  878
  915
  952
  990
  1,029
  1,070
  1,111
  1,155
  1,201
  1,249
  1,299
  1,352
  1,407
  1,466
  1,528
  1,593
  1,662
  1,735
  1,811
  1,892
Cash from operations, $m
  23,745
  27,804
  32,171
  36,846
  41,821
  47,090
  52,645
  58,482
  64,599
  70,994
  77,274
  84,228
  91,469
  99,001
  106,833
  114,976
  123,441
  132,243
  141,397
  150,920
  160,831
  171,150
  181,899
  193,101
  204,782
  216,967
  229,686
  242,966
  256,841
  271,341
Maintenance CAPEX, $m
  -15,549
  -18,140
  -20,941
  -23,955
  -27,179
  -30,606
  -34,233
  -38,055
  -42,069
  -46,273
  -50,666
  -55,249
  -60,023
  -64,990
  -70,156
  -75,526
  -81,106
  -86,904
  -92,931
  -99,195
  -105,709
  -112,486
  -119,538
  -126,880
  -134,528
  -142,500
  -150,811
  -159,482
  -168,532
  -177,982
New CAPEX, $m
  -19,691
  -21,286
  -22,911
  -24,499
  -26,049
  -27,563
  -29,047
  -30,507
  -31,951
  -33,388
  -34,828
  -36,280
  -37,754
  -39,260
  -40,808
  -42,409
  -44,070
  -45,801
  -47,611
  -49,507
  -51,500
  -53,595
  -55,802
  -58,128
  -60,581
  -63,169
  -65,899
  -68,779
  -71,818
  -75,024
Cash from investing activities, $m
  -35,240
  -39,426
  -43,852
  -48,454
  -53,228
  -58,169
  -63,280
  -68,562
  -74,020
  -79,661
  -85,494
  -91,529
  -97,777
  -104,250
  -110,964
  -117,935
  -125,176
  -132,705
  -140,542
  -148,702
  -157,209
  -166,081
  -175,340
  -185,008
  -195,109
  -205,669
  -216,710
  -228,261
  -240,350
  -253,006
Free cash flow, $m
  -11,495
  -11,622
  -11,680
  -11,608
  -11,406
  -11,080
  -10,635
  -10,080
  -9,421
  -8,667
  -8,220
  -7,300
  -6,308
  -5,250
  -4,131
  -2,958
  -1,734
  -462
  856
  2,217
  3,622
  5,069
  6,559
  8,093
  9,672
  11,299
  12,976
  14,705
  16,491
  18,336
Issuance/(repayment) of debt, $m
  21,573
  23,569
  25,368
  27,126
  28,842
  30,519
  32,163
  33,779
  35,378
  36,969
  38,563
  40,171
  41,803
  43,471
  45,185
  46,957
  48,796
  50,713
  52,717
  54,817
  57,023
  59,343
  61,787
  64,362
  67,078
  69,943
  72,966
  76,156
  79,520
  83,070
Issuance/(repurchase) of shares, $m
  13,837
  14,136
  14,275
  14,281
  14,156
  13,905
  13,534
  13,051
  12,464
  11,781
  9,947
  9,098
  8,179
  7,196
  6,154
  5,060
  3,918
  2,732
  1,504
  237
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  35,410
  37,705
  39,643
  41,407
  42,998
  44,424
  45,697
  46,830
  47,842
  48,750
  48,510
  49,269
  49,982
  50,667
  51,339
  52,017
  52,714
  53,445
  54,221
  55,054
  57,023
  59,343
  61,787
  64,362
  67,078
  69,943
  72,966
  76,156
  79,520
  83,070
Total cash flow (excl. dividends), $m
  23,914
  26,083
  27,963
  29,799
  31,592
  33,344
  35,061
  36,750
  38,421
  40,083
  40,290
  41,969
  43,674
  45,417
  47,208
  49,059
  50,981
  52,983
  55,077
  57,271
  60,645
  64,412
  68,346
  72,455
  76,750
  81,242
  85,942
  90,861
  96,011
  101,406
Retained Cash Flow (-), $m
  -18,478
  -20,077
  -21,610
  -23,107
  -24,569
  -25,998
  -27,398
  -28,775
  -30,137
  -31,492
  -32,850
  -34,219
  -35,610
  -37,031
  -38,491
  -40,000
  -41,567
  -43,200
  -44,907
  -46,696
  -48,575
  -50,552
  -52,633
  -54,827
  -57,141
  -59,581
  -62,156
  -64,873
  -67,740
  -70,763
Prev. year cash balance distribution, $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 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
  5,437
  6,006
  6,353
  6,692
  7,023
  7,346
  7,663
  7,975
  8,284
  8,591
  7,439
  7,750
  8,064
  8,386
  8,717
  9,059
  9,414
  9,783
  10,170
  10,575
  12,070
  13,860
  15,712
  17,628
  19,610
  21,661
  23,785
  25,987
  28,271
  30,642
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
  5,212
  5,498
  5,529
  5,510
  5,444
  5,332
  5,177
  4,985
  4,759
  4,504
  3,533
  3,307
  3,066
  2,815
  2,559
  2,302
  2,048
  1,802
  1,566
  1,344
  1,248
  1,150
  1,030
  898
  763
  632
  511
  402
  309
  231
Current shareholders' claim on cash, %
  84.9
  73.5
  64.7
  57.9
  52.4
  48.1
  44.6
  41.7
  39.4
  37.5
  36.1
  34.9
  34.0
  33.3
  32.7
  32.3
  32.0
  31.8
  31.7
  31.6
  31.6
  31.6
  31.6
  31.6
  31.6
  31.6
  31.6
  31.6
  31.6
  31.6

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 21.2
Price to Sales 1
Price to Book 1.3
Price to Tangible Book
Price to Cash Flow 8
Price to Free Cash Flow -82.9
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 $149099 million for the last fiscal year's total revenue generated by Total ADR. The default revenue input number comes from 0001 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 16.6% 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 89.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $9604 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 5.4% 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 79.3%.

Life of production assets of 7.6 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%. 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 - $111556 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 198.317 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 $10.8 billion.

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