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Are Investors Undervaluing TOTAL S.A. (TOT) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

TOTAL S.A. is a stock many investors are watching right now. TOT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.54, which compares to its industry's average of 12.98. Over the past 52 weeks, TOT's Forward P/E has been as high as 12.50 and as low as 8.70, with a median of 10.35.

Investors should also note that TOT holds a PEG ratio of 1.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TOT's PEG compares to its industry's average PEG of 1.55. Over the past 52 weeks, TOT's PEG has been as high as 1.62 and as low as 0.71, with a median of 1.01.

Another valuation metric that we should highlight is TOT's P/B ratio of 1.12. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. TOT's current P/B looks attractive when compared to its industry's average P/B of 1.19. Over the past year, TOT's P/B has been as high as 1.35 and as low as 1.04, with a median of 1.21.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TOT has a P/S ratio of 0.62. This compares to its industry's average P/S of 0.66.

Finally, investors will want to recognize that TOT has a P/CF ratio of 5.21. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. TOT's current P/CF looks attractive when compared to its industry's average P/CF of 6. TOT's P/CF has been as high as 7.05 and as low as 4.93, with a median of 5.83, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that TOTAL S.A. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TOT feels like a great value stock at the moment.

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