British American Tobacco

Emerging Markets And Digital Transformation Will Enable Long-Term Stability

AN

AnalystConsensusTarget

AnalystConsensusTarget

Not Invested

Based on Analyst Price Targets

Published

23 Feb 25

Updated

11 Dec 25

Views

609

n/a

n/a

AnalystConsensusTarget's Fair Value

n/a

1Y

46.5%

7D

-1.4%

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1Y

46.5%

7D

-1.4%

You can edit this narrative until Dec 12 9:10 AM. Then, changes will post as Updates.

Author's Valuation

UK£44.715.6% undervalued

AnalystConsensusTarget Fair Value

Shared on 11 Dec 25

Fair value Increased 2.48%

BATS: Future Returns Will Reflect Smoke-Free Shift And Deleveraging Focus

Analysts have raised their price target for British American Tobacco by approximately $1.08, citing modest improvements in projected revenue growth, profit margins, and future valuation multiples that collectively support a slightly higher fair value estimate. What's in the News Issued 2025 guidance for around 2% group revenue growth at constant rates, with mid single digit revenue growth expected from New Category products, signaling modest acceleration in smoke-free offerings (company guidance).

Shared on 27 Nov 25

Fair value Increased 2.25%

BATS: Future Returns Will Reflect Balanced Profitability And Margin Expectations

British American Tobacco's analyst price target has been modestly raised from $42.67 to $43.63. Analysts cite a slight adjustment in discount rate and profitability expectations despite updated projections for revenue growth and profit margins.

Shared on 12 Sep 25

Fair value Increased 3.33%

The consensus analyst price target for British American Tobacco has increased, primarily reflecting a modest rise in its future P/E multiple, with fair value now assessed at £42.67. What's in the News CFO Soraya Benchikh is stepping down; Javed Iqbal appointed interim CFO while a permanent successor is sought.

Shared on 07 Aug 25

Fair value Increased 2.38%

British American Tobacco’s consensus price target and future P/E both saw negligible changes, reflecting market stability in valuation expectations, with fair value ticking up slightly from £40.33 to £40.67. What's in the News Completed repurchase of 41,467,587 shares (1.87%) for £1,148 million under ongoing buyback program; latest tranche: 14,075,158 shares for £450 million.

Shared on 01 May 25

Fair value Increased 18%

Shared on 23 Apr 25

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on 17 Apr 25

Fair value Decreased 0.087%

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on 09 Apr 25

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on 02 Apr 25

Fair value Decreased 0.087%

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on 26 Mar 25

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on 19 Mar 25

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on 12 Mar 25

Fair value Decreased 0.15%

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget Fair Value

UK£44.71

5.6% undervalued

Future estimation in

Growth p.a.

Growth p.a.

%

Decrease

Increase

Current revenue growth rate

2.79%

Tobacco revenue growth rate

0.08%

Risk Level (Discount Rate)

Our default considers factors like the company's size, volatility, profitablity and country of operation.

%

0

Decrease

Increase

Current discount rate

8.44%

Calculation

UK£8.27b

Earnings '28

x

14.94x

PE Ratio '28

=

UK£123.51b

Market Cap '28

UK£123.51b

Market Cap '28

/

2.17b

No. shares '28

=

UK£56.95

Share Price '28

UK£56.95 Share Price '28

Discounted to 2025 @ 8.41% p.a.

=

UK£44.69

Fair Value '25