BTI Valuation

British American Tobacco plc

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52.440

+1.25(2.442%)1D

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 10.84 is considered Fairly compared with the five-year average of 7.52. The fair price of British American Tobacco plc (BTI) is between 39.67 to 56.61 according to relative valuation methord.

Relative Value

Fair Zone

39.67-56.61

Current Price：52.44

Fair

11.10

Trailing

Forward

9.41

EV/EBITDA

British American Tobacco plc. (BTI) has a current EV/EBITDA of 9.41. The 5-year average EV/EBITDA is 8.02. The thresholds are as follows: Strongly Undervalued below 6.44, Undervalued between 6.44 and 7.23, Fairly Valued between 8.81 and 7.23, Overvalued between 8.81 and 9.59, and Strongly Overvalued above 9.59. The current Forward EV/EBITDA of 9.41 falls within the Overvalued range.

9.96

EV/EBIT

British American Tobacco plc. (BTI) has a current EV/EBIT of 9.96. The 5-year average EV/EBIT is 8.65. The thresholds are as follows: Strongly Undervalued below 7.01, Undervalued between 7.01 and 7.83, Fairly Valued between 9.47 and 7.83, Overvalued between 9.47 and 10.28, and Strongly Overvalued above 10.28. The current Forward EV/EBIT of 9.96 falls within the Overvalued range.

39.92

British American Tobacco plc. (BTI) has a current PS of 39.92. The 5-year average PS is 2.59. The thresholds are as follows: Strongly Undervalued below -2.18, Undervalued between -2.18 and 0.20, Fairly Valued between 4.98 and 0.20, Overvalued between 4.98 and 7.36, and Strongly Overvalued above 7.36. The current Forward PS of 39.92 falls within the Strongly Overvalued range.

8.02

P/OCF

British American Tobacco plc. (BTI) has a current P/OCF of 8.02. The 5-year average P/OCF is 7.05. The thresholds are as follows: Strongly Undervalued below 5.40, Undervalued between 5.40 and 6.22, Fairly Valued between 7.88 and 6.22, Overvalued between 7.88 and 8.70, and Strongly Overvalued above 8.70. The current Forward P/OCF of 8.02 falls within the Overvalued range.

10.81

P/FCF

British American Tobacco plc. (BTI) has a current P/FCF of 10.81. The 5-year average P/FCF is 7.95. The thresholds are as follows: Strongly Undervalued below 5.29, Undervalued between 5.29 and 6.62, Fairly Valued between 9.28 and 6.62, Overvalued between 9.28 and 10.60, and Strongly Overvalued above 10.60. The current Forward P/FCF of 10.81 falls within the Strongly Overvalued range.

British American Tobacco plc (BTI) has a current Price-to-Book (P/B) ratio of 1.89. Compared to its 3-year average P/B ratio of 1.20 , the current P/B ratio is approximately 58.16% higher. Relative to its 5-year average P/B ratio of 1.12, the current P/B ratio is about 68.27% higher. British American Tobacco plc (BTI) has a Forward Free Cash Flow (FCF) yield of approximately 10.35%. Compared to its 3-year average FCF yield of 15.80%, the current FCF yield is approximately -34.52% lower. Relative to its 5-year average FCF yield of 14.92% , the current FCF yield is about -30.65% lower.

1.94

P/B

Median3y

1.20

Median5y

1.12

10.35

FCF Yield

Median3y

15.80

Median5y

14.92

Competitors Valuation Multiple

The average P/S ratio for BTI's competitors is 82.63, providing a benchmark for relative valuation. British American Tobacco plc Corp (BTI) exhibits a P/S ratio of 39.92, which is -51.69% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

BTI.N

British American Tobacco plc

Turning Point Brands Inc

Philip Morris International Inc

144.33

9.42%

225.09B

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.