Petroleo Brasileiro SA Petrobras ADR (PBR) is undervalued and TotalEnergies SE (TTE) is slightly undervalued.
Against our estimates of intrinsic value, PBR trades at the wider discount: a margin of safety of +62%, against +16% for TTE.
Values as of the 19 Oct 2026 close.
Discounting its cash flows at 7.3% (average of 3 methods) values the shares at $67.32; the price of $25.56 is 62% below that value, and 81% of that value comes from beyond year five.
Leak Score 79/100 on 12 of 12 signals
Discounting its cash flows at 6.8% (average of 3 methods) values the shares at $107.66; the price of $89.95 is 16% below that value, and 83% of that value comes from beyond year five.
Leak Score 82/100 on 10 of 12 signals
| Metric | PBR | TTE |
|---|---|---|
| Verdict | Undervalued | Slightly undervalued |
| Price | $25.56 | $89.95 |
| Intrinsic value | $67.32 | $107.66 |
| Margin of safety | +62% | +16% |
| Leak Score | 79/100 (12/12) | 82/100 (10/12) |
| Market cap | $95.1B | $200.1B |
| Revenue growth, 5 years | 11.0% | 8.8% |
| Operating margin | 34.8% | 14.2% |
| Net margin | 24.5% | 9.1% |
| Return on equity | 30.7% | 14.6% |
| Debt to equity | 0.76 | 0.49 |
| P/E | 6.5x | 11.1x |
| Forward P/E | 6.4x | 8.1x |
| P/B | 1.8x | 1.6x |
| Dividend yield | 6.9% | 4.5% |