BTI PE Ratio & Valuation,Is BTI Overvalued

BTI Relative Valuation

BTI's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, BTI is overvalued; if below, it's undervalued.

Historical Valuation

British American Tobacco plc (BTI) is now in the Fair zone, suggesting that its current forward PE ratio of 11.98 is considered Fairly compared with the five-year average of 7.49. The fair price of British American Tobacco plc (BTI) is between 36.60 to 54.48 according to relative valuation methord.

Relative Value

Fair Zone

36.60-54.48

Current Price：53.92

Fair

11.98

9.87

EV/EBITDA

British American Tobacco plc. (BTI) has a current EV/EBITDA of 9.87. The 5-year average EV/EBITDA is 8.07. The thresholds are as follows: Strongly Undervalued below 6.35, Undervalued between 6.35 and 7.21, Fairly Valued between 8.93 and 7.21, Overvalued between 8.93 and 9.78, and Strongly Overvalued above 9.78. The current Forward EV/EBITDA of 9.87 falls within the Strongly Overvalued range.

10.47

EV/EBIT

British American Tobacco plc. (BTI) has a current EV/EBIT of 10.47. The 5-year average EV/EBIT is 8.69. The thresholds are as follows: Strongly Undervalued below 6.93, Undervalued between 6.93 and 7.81, Fairly Valued between 9.57 and 7.81, Overvalued between 9.57 and 10.45, and Strongly Overvalued above 10.45. The current Forward EV/EBIT of 10.47 falls within the Strongly Overvalued range.

3.50

British American Tobacco plc. (BTI) has a current PS of 3.50. The 5-year average PS is 2.49. The thresholds are as follows: Strongly Undervalued below 1.67, Undervalued between 1.67 and 2.08, Fairly Valued between 2.90 and 2.08, Overvalued between 2.90 and 3.30, and Strongly Overvalued above 3.30. The current Forward PS of 3.50 falls within the Strongly Overvalued range.

8.20

P/OCF

British American Tobacco plc. (BTI) has a current P/OCF of 8.20. The 5-year average P/OCF is 7.08. The thresholds are as follows: Strongly Undervalued below 5.37, Undervalued between 5.37 and 6.23, Fairly Valued between 7.94 and 6.23, Overvalued between 7.94 and 8.79, and Strongly Overvalued above 8.79. The current Forward P/OCF of 8.20 falls within the Overvalued range.

11.71

P/FCF

British American Tobacco plc. (BTI) has a current P/FCF of 11.71. The 5-year average P/FCF is 8.10. The thresholds are as follows: Strongly Undervalued below 5.06, Undervalued between 5.06 and 6.58, Fairly Valued between 9.62 and 6.58, Overvalued between 9.62 and 11.14, and Strongly Overvalued above 11.14. The current Forward P/FCF of 11.71 falls within the Strongly Overvalued range.

British American Tobacco plc (BTI) has a current Price-to-Book (P/B) ratio of 2.03. Compared to its 3-year average P/B ratio of 1.26 , the current P/B ratio is approximately 61.48% higher. Relative to its 5-year average P/B ratio of 1.16, the current P/B ratio is about 74.92% higher. British American Tobacco plc (BTI) has a Forward Free Cash Flow (FCF) yield of approximately 9.66%. Compared to its 3-year average FCF yield of 15.49%, the current FCF yield is approximately -37.64% lower. Relative to its 5-year average FCF yield of 14.69% , the current FCF yield is about -34.23% lower.

2.03

P/B

Median3y

1.26

Median5y

1.16

9.66

FCF Yield

Median3y

15.49

Median5y

14.69

Competitors Valuation Multiple

The average P/S ratio for BTI's competitors is 4.56, providing a benchmark for relative valuation. British American Tobacco plc Corp (BTI) exhibits a P/S ratio of 3.50, which is -23.32% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of BTI increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00%to the performance.

Overall, the performance of BTI in the past 1 year is driven by Unknown.

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Frequently Asked Questions

Is British American Tobacco plc (BTI) currently overvalued or undervalued?

What is British American Tobacco plc (BTI) fair value?

BTI's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of British American Tobacco plc (BTI) is between 36.60 to 54.48 according to relative valuation methord.

How does BTI's valuation metrics compare to the industry average?

What is the current P/B ratio for British American Tobacco plc (BTI) as of Jan 08 2026?

As of Jan 08 2026, British American Tobacco plc (BTI) has a P/B ratio of 2.03. This indicates that the market values BTI at 2.03 times its book value.

What is the current FCF Yield for British American Tobacco plc (BTI) as of Jan 08 2026?

As of Jan 08 2026, British American Tobacco plc (BTI) has a FCF Yield of 9.66%. This means that for every dollar of British American Tobacco plc’s market capitalization, the company generates 9.66 cents in free cash flow.

What is the current Forward P/E ratio for British American Tobacco plc (BTI) as of Jan 08 2026?

As of Jan 08 2026, British American Tobacco plc (BTI) has a Forward P/E ratio of 11.98. This means the market is willing to pay $11.98 for every dollar of British American Tobacco plc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for British American Tobacco plc (BTI) as of Jan 08 2026?

As of Jan 08 2026, British American Tobacco plc (BTI) has a Forward P/S ratio of 3.50. This means the market is valuing BTI at $3.50 for every dollar of expected revenue over the next 12 months.

BTI Valuation