Is TotalEnergies SE ADR (TTE) overvalued?
On Equity Rank's model estimate, TTE trades 42% below its fair value. TotalEnergies SE ADR (TTE) last closed at $87.82; the multi-method model fair value is $150.97.
| Price | Model fair value | Price vs model |
|---|---|---|
| $87.82 | $150.97 | 42% below |
What the answer rests on
- 11 of 13 valuation methods put TTE's value above its price and 2 put it below, so the methods mostly agree.
- To justify today's price, TTE's free cash flow would need to grow about 6.7% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew -32.6% a year.
- TTE trades at 9.0 times its last year's earnings, against a median of 14.9 for 110 profitable Energy companies.
- Over the past year the price sat below the model fair value on 100% of trading days. The gap ranged from 46% below to 9% below the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind TTE's fair value · What prices assume · Other companies