(BTI) British American Tobacco - Overview
Stock: Cigarettes, Vapour, Heated, Oral
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 6.22% |
| Yield on Cost 5y | 11.82% |
| Yield CAGR 5y | 0.10% |
| Payout Consistency | 89.1% |
| Payout Ratio | 146.9% |
| Risk 5d forecast | |
|---|---|
| Volatility | 19.8% |
| Relative Tail Risk | -4.64% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 2.09 |
| Alpha | 57.37 |
| Character TTM | |
|---|---|
| Beta | 0.091 |
| Beta Downside | 0.132 |
| Drawdowns 3y | |
|---|---|
| Max DD | 20.51% |
| CAGR/Max DD | 1.44 |
Description: BTI British American Tobacco January 27, 2026
British American Tobacco p.l.c. (NYSE: BTI) is a globally diversified tobacco and nicotine company operating across the Americas, Europe, Asia-Pacific, the Middle East, Africa and the United States. Its portfolio spans combustible cigarettes, next-generation products (vapor, heated-tobacco and modern oral nicotine), and traditional oral products such as snus and moist snuff, marketed under brands including Vuse, glo, Velo, Dunhill, Kent, Lucky Strike, Pall Mall, Rothmans, Newport, Natural American Spirit and Camel.
According to the FY 2025 annual report, BTI generated $34.2 billion in net revenue, with an adjusted operating margin of 31.8 % and free cash flow of $7.9 billion, supporting a dividend yield of roughly 8.4 % and a payout ratio near 70 %. Next-generation products now account for ≈ 12 % of total net revenue, up from ≈ 8 % in FY 2023, reflecting a compound annual growth rate (CAGR) of about 15 % in the segment.
The tobacco sector remains highly regulated and sensitive to macro-economic factors such as inflation-adjusted consumer discretionary spending and excise-tax policy. In 2024-25, global cigarette consumption fell ≈ 2 % year-over-year, while the “Reduced-Risk” product category grew ≈ 10 % YoY, driven by shifting consumer preferences and stricter smoke-free legislation in key markets like the EU and Canada.
For a deeper, data-driven view of BTI’s valuation dynamics, you may find it useful to explore the analytical dashboards on ValueRay.
Piotroski VR‑10 (Strict, 0-10) 5.5
| Net Income: -10.75b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.17 > 0.02 and ΔFCF/TA 6.47 > 1.0 |
| NWC/Revenue: -4.10% < 20% (prev -4.31%; Δ 0.22% < -1%) |
| CFO/TA 0.15 > 3% & CFO 16.29b > Net Income -10.75b |
| Net Debt (-4.40b) to EBITDA (20.68b): -0.21 < 3 |
| Current Ratio: 0.87 > 1.5 & < 3 |
| Outstanding Shares: last quarter (2.21b) vs 12m ago -1.14% < -2% |
| Gross Margin: 82.49% > 18% (prev 0.74%; Δ 8176 % > 0.5%) |
| Asset Turnover: 45.23% > 50% (prev 29.04%; Δ 16.19% > 0%) |
| Interest Coverage Ratio: 3.79 > 6 (EBITDA TTM 20.68b / Interest Expense TTM 4.30b) |
Altman Z'' 2.29
| A: -0.02 (Total Current Assets 13.88b - Total Current Liabilities 16.00b) / Total Assets 110.23b |
| B: 0.21 (Retained Earnings 22.99b / Total Assets 110.23b) |
| C: 0.14 (EBIT TTM 16.31b / Avg Total Assets 114.47b) |
| D: 0.74 (Book Value of Equity 46.75b / Total Liabilities 63.05b) |
| Altman-Z'' Score: 2.29 = BBB |
Beneish M -3.34
| DSRI: 0.61 (Receivables 3.48b/3.79b, Revenue 51.78b/34.48b) |
| GMI: 0.90 (GM 82.49% / 73.90%) |
| AQI: 0.99 (AQ_t 0.84 / AQ_t-1 0.84) |
| SGI: 1.50 (Revenue 51.78b / 34.48b) |
| TATA: -0.25 (NI -10.75b - CFO 16.29b) / TA 110.23b) |
| Beneish M-Score: -3.34 (Cap -4..+1) = AA |
What is the price of BTI shares?
Over the past week, the price has changed by +3.49%, over one month by +16.17%, over three months by +17.39% and over the past year by +60.49%.
Is BTI a buy, sell or hold?
- StrongBuy: 1
- Buy: 2
- Hold: 1
- Sell: 0
- StrongSell: 1
What are the forecasts/targets for the BTI price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 59.5 | -5.3% |
| Analysts Target Price | 59.5 | -5.3% |
| ValueRay Target Price | 82.1 | 30.8% |
BTI Fundamental Data Overview February 03, 2026
P/E Trailing = 31.6042
P/E Forward = 12.1065
P/S = 5.1441
P/B = 2.032
P/EG = 0.4232
Revenue TTM = 51.78b GBP
EBIT TTM = 16.31b GBP
EBITDA TTM = 20.68b GBP
Long Term Debt = 31.90b GBP (from longTermDebt, last quarter)
Short Term Debt = 3.30b GBP (from shortTermDebt, last quarter)
Debt = 35.33b GBP (from shortLongTermDebtTotal, last quarter)
Net Debt = -4.40b GBP (from netDebt column, last quarter)
Enterprise Value = 127.40b GBP (96.47b + Debt 35.33b - CCE 4.40b)
Interest Coverage Ratio = 3.79 (Ebit TTM 16.31b / Interest Expense TTM 4.30b)
EV/FCF = 6.81x (Enterprise Value 127.40b / FCF TTM 18.71b)
FCF Yield = 14.69% (FCF TTM 18.71b / Enterprise Value 127.40b)
FCF Margin = 36.14% (FCF TTM 18.71b / Revenue TTM 51.78b)
Net Margin = -20.75% (Net Income TTM -10.75b / Revenue TTM 51.78b)
Gross Margin = 82.49% ((Revenue TTM 51.78b - Cost of Revenue TTM 9.06b) / Revenue TTM)
Gross Margin QoQ = 83.59% (prev 83.20%)
Tobins Q-Ratio = 1.16 (Enterprise Value 127.40b / Total Assets 110.23b)
Interest Expense / Debt = 2.16% (Interest Expense 764.0m / Debt 35.33b)
Taxrate = 18.10% (1.01b / 5.57b)
NOPAT = 13.36b (EBIT 16.31b * (1 - 18.10%))
Current Ratio = 0.87 (Total Current Assets 13.88b / Total Current Liabilities 16.00b)
Debt / Equity = 0.75 (Debt 35.33b / totalStockholderEquity, last quarter 46.87b)
Debt / EBITDA = -0.21 (Net Debt -4.40b / EBITDA 20.68b)
Debt / FCF = -0.24 (Net Debt -4.40b / FCF TTM 18.71b)
Total Stockholder Equity = 51.18b (last 4 quarters mean from totalStockholderEquity)
RoA = -9.39% (Net Income -10.75b / Total Assets 110.23b)
RoE = -20.99% (Net Income TTM -10.75b / Total Stockholder Equity 51.18b)
RoCE = 19.63% (EBIT 16.31b / Capital Employed (Equity 51.18b + L.T.Debt 31.90b))
RoIC = 26.60% (NOPAT 13.36b / Invested Capital 50.21b)
WACC = 5.05% (E(96.47b)/V(131.80b) * Re(6.25%) + D(35.33b)/V(131.80b) * Rd(2.16%) * (1-Tc(0.18)))
Discount Rate = 6.25% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: -33.33 | Cagr: -0.57%
[DCF Debug] Terminal Value 87.27% ; FCFF base≈16.22b ; Y1≈17.92b ; Y5≈23.17b
Fair Price DCF = 317.1 (EV 683.71b - Net Debt -4.40b = Equity 688.12b / Shares 2.17b; r=5.90% [WACC]; 5y FCF grow 12.09% → 2.90% )
EPS Correlation: 13.29 | EPS CAGR: 0.0% | SUE: 0.0 | # QB: 0
Revenue Correlation: 55.30 | Revenue CAGR: -2.95% | SUE: N/A | # QB: 0
EPS next Year (2026-12-31): EPS=4.87 | Chg30d=+0.079 | Revisions Net=-1 | Growth EPS=+5.7% | Growth Revenue=+2.9%