Proposition 4
Tag 04YC, permanent. Cite it as [Bourbaki, Tag 04YC].
Commutative Algebra, chapter VI, § 10. Extensions of a valuation to a transcendental extension
Let G be a totally ordered commutative group. Suppose that G is finitely generated and that . Then G is isomorphic to ordered lexicographically.
Let us write . If , then . If , the structure of finitely generated commutative groups shows that there is an isomorphism of G onto Z (Algebra, Chapter VII, § 4, no. 6, Theorem 3). Now Z has only two total orderings compatible with its group structure, namely the usual ordering and its opposite. Hence or is an isomorphism of the ordered group G onto Z with the usual ordering.
Suppose now that and let us argue by induction on . Let H be an isolated subgroup of G of height . Then (formula (4)), and (Corollary to Proposition 3), whence and . The induction hypothesis shows that H is isomorphic to ordered lexicographically and the case shows that is isomorphic to Z. As Z is a free Z-module, H is a direct factor of G (Algebra, Chapter 11, § 1, no. 11, Proposition 21). The following lemma then shows that G is isomorphic (not canonically) to the lexicographical product , which completes the proof.
Bourbaki puts the proof directly after the statement, so what is above is the statement and its proof together.