TotalEnergies SE (TTE) Stock Valuation — DCF Analysis
Oil & Gas Integrated · NYSE
Current Price
$88.02
Intrinsic Value
$116.98
+24.8% margin of safety
COMPETITIVE MOAT
↑Integrated Value Chain
TotalEnergies benefits from an integrated business model spanning exploration, production, refining, and marketing. This allows for operational efficiencies and captures value across the entire energy supply chain.
↑Global Diversified Asset Base
The company possesses a geographically diverse portfolio of oil, gas, and increasingly, renewable energy assets. This diversification mitigates country-specific risks and provides access to various resource pools.
↑Strategic LNG Position
TotalEnergies holds significant positions in the global liquefied natural gas (LNG) market, with ongoing projects and partnerships. This strategic focus on LNG offers long-term growth potential and energy security.
INVESTMENT RISKS
↓Geopolitical and Regulatory Uncertainty
Exiting the Arctic LNG 2 project highlights the significant geopolitical risks and regulatory hurdles, particularly in Russia. Sanctions and political decisions can disrupt operations and asset values.
↓Energy Transition Pressures
The global shift towards lower-carbon energy sources presents a long-term challenge. While TotalEnergies is investing in renewables, its core business remains heavily reliant on fossil fuels, facing potential demand destruction.
↓Commodity Price Volatility
Earnings are highly sensitive to fluctuations in oil and gas prices. Significant downturns in commodity markets can negatively impact profitability and investment capacity.
Base case
TTE base case valuation
A base case discounted cash flow model for TTE estimates an intrinsic value of about $116.98 per share, against a current price of $88.02. The model assumes 10.6% annual free cash flow growth, a 10.0% discount rate, and a 17x exit multiple.
Intrinsic Value
$116.98
Margin of safety
+24.8%
Expected annual return
+5.9%
Base case assumptions: 10.6% annual growth, 10.0% discount rate, 17x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the TTE valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for TotalEnergies SE respond.
Open DCF Calculator for TTECompany Overview
TotalEnergies SE, headquartered in Courbevoie, France, traces its origins back to its incorporation in 1924. Known as TOTAL SE until its rebranding in June 2021, it stands as a global, integrated energy powerhouse. Its extensive worldwide operations are structured across four key business segments: The Integrated Gas, Renewables & Power division encompasses the entire liquefied natural gas (LNG) value chain, from production and shipping to trading and regasification. It also actively trades various energy commodities including liquefied petroleum gas (LPG), natural gas, and electricity, alongside petcoke and sulfur. This segment is deeply involved in natural gas transportation, electricity generation from a diverse mix of sources—ranging from natural gas to wind, solar, hydroelectric, and biogas—as well as energy storage solutions and the development of biomethane facilities. Furthermore, it offers energy efficiency services. Its Exploration & Production arm is dedicated to discovering and extracting crude oil and natural gas deposits. The Refining & Chemicals segment is responsible for refining petrochemicals, such as olefins and aromatics, and producing various polymer derivatives including polyethylene, polypropylene, and polystyrene, as well as hydrocarbon resins. This segment also ventures into biomass conversion and elastomer processing, complemented by the trading and shipping of crude oil and refined petroleum products. Finally, the Marketing & Services division focuses on manufacturing and distributing lubricants, alongside supplying and marketing a wide array of petroleum products. These include bulk fuel, specialized fluids, aviation and marine fuels, compressed natural gas (CNG), LPG, and bitumen. The company further supports its customers with fuel payment solutions and maintains a vast retail network, comprising approximately 16,000 service stations and 25,000 electric vehicle (EV) charging points globally. TotalEnergies also reported substantial combined proved reserves of oil and gas, totaling 12,062 Mboe as of December 31, 2021. Demonstrating its commitment to innovation and sustainability, the company has forged strategic alliances with partners like PureCycle Technologies, Plastic Energy, Freepoint Eco-Systems, and Plastic Omnium for various developmental initiatives.
Financial Metrics — TTE Stock Valuation Data
Revenue/Share (TTM)
$86.23
FCF/Share (TTM)
$5.18
ROIC (TTM)
6.4%
ROE (TTM)
12.9%
P/FCF
17.0x
EV/EBITDA
5.2x
FCF Yield
5.89%
Debt/Equity
0.52x
Based on trailing twelve-month data, TTE shows a free cash flow per share of $5.18 and a ROIC of 6.4%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 17.0x and FCF yield of 5.89% are important context metrics when evaluating TTE's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of TTE?
TotalEnergies SE currently generates $5.18 in free cash flow per share. At the current price of $88.02, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is TTE undervalued?
TTE trades at a P/FCF ratio of 17.0x with a free cash flow yield of 5.89%. This P/FCF is in a moderate range. However, whether TTE is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value TTE stock using DCF?
To perform a DCF valuation on TotalEnergies SE: (1) Start with the trailing free cash flow per share ($5.18) as the base, (2) project future FCF growth over 5-10 years based on Oil & Gas Integrated industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting TTE's risk profile — with a debt-to-equity of 0.52x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to TTE?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For TotalEnergies SE, this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Oil & Gas Integrated trends, then discounting those amounts to today's dollars. TTE's ROIC of 6.4% suggests the company may face challenges generating returns above its cost of capital.
How does WACC affect TTE stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For TTE, with a debt-to-equity ratio of 0.52x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 5.2x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See TTE PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Energy valuationsDCF and P/E value TTE with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.