Loading...
BATS logo

British American Tobacco p.l.c.LSE:BATS Stock Report

Market Cap UK£90.2b
Share Price
UK£41.59
My Fair Value
n/a
1Y52.3%
7D6.8%
Portfolio Value
​
View

British American Tobacco p.l.c.

LSE:BATS Stock Report

Market Cap: UK£90.2b

British American Tobacco (BATS) Stock Overview

Provides tobacco and nicotine products to consumers in the Americas, Europe, the Asia-Pacific, the Middle East, Africa, and the United States. More details

BATS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance1/6
Financial Health2/6
Dividends4/6

Rewards

Trading at 30% below our estimate of its fair value

Earnings are forecast to grow 15.85% per year

Became profitable this year

Risk Analysis

Large one-off items impacting financial results

Dividend of 5.78% is not well covered by earnings

Has a high level of debt


BATS Community Fair Values

Create Narrative

See what 320 others think this stock is worth. Follow their fair value or set your own to get alerts.

BATS logo
British American Tobacco

Emerging Markets And Digital Transformation Will Enable Long-Term Stability

Key Takeaways Expansion of reduced-risk products and innovation in emerging markets supports global growth, margin improvement, and earnings resilience. Digital transformation and cost efficiency drive capital allocation, cash generation, and sustained shareholder returns.
View narrative
UK£42.67
FV
2.5% undervalued intrinsic discount
2.43%
Revenue growth p.a.
2users have liked this narrative
0users have commented on this narrative
164users have followed this narrative
BATS logo
British American Tobacco

British American Tobacco: Navigating a Complex Transition That Warrants a High Fair Value

Management Summary / Key Takeaways British American Tobacco (BAT) is undergoing a strategic transformation that warrants a more optimistic forward-looking analysis than many observers currently provide. Key features of BAT's complex transition include: Dual focus on diversification and careful claims management, balancing the shift away from traditional tobacco while managing legal challenges.
View narrative
UK£59.46
FV
30.1% undervalued intrinsic discount
14.00%
Revenue growth p.a.
30users have liked this narrative
9users have commented on this narrative
45users have followed this narrative
BATS logo
British American Tobacco

Modern Oral Products Will Unlock Emerging Market Opportunities

Key Takeaways Rapid expansion in Modern Oral products, digital transformation, and global reach position BAT for faster-than-expected growth in revenue, margins, and earnings. Market leadership and regulatory shifts in New Categories support resilient cash flow and strong long-term revenue expansion across diverse regions.
View narrative
UK£52
FV
20.0% undervalued intrinsic discount
4.90%
Revenue growth p.a.
1users have liked this narrative
0users have commented on this narrative
6users have followed this narrative
BATS logo
British American Tobacco

Global Regulation And Shifting Norms Will Curtail Prospects

Key Takeaways Aggressive regulation, shifting consumer attitudes, and ESG-driven divestment are pressuring BAT's traditional revenue streams, valuation, and long-term profitability. Exposure to emerging markets heightens volatility, while illicit competition and bans constrain diversification beyond legacy tobacco products.
View narrative
UK£30
FV
38.6% overvalued intrinsic discount
0.73%
Revenue growth p.a.
0users have liked this narrative
0users have commented on this narrative
6users have followed this narrative
View Stock Community

British American Tobacco p.l.c. Competitors

Price History & Performance

Summary of share price highs, lows and changes for British American Tobacco
Historical stock prices
Current Share PriceUK£41.59
52 Week HighUK£44.01
52 Week LowUK£27.02
Beta0.062
1 Month Change7.91%
3 Month Change-1.63%
1 Year Change52.29%
3 Year Change25.40%
5 Year Change48.35%
Change since IPO896.17%

Recent News & Updates

There's Been No Shortage Of Growth Recently For British American Tobacco's (LON:BATS) Returns On Capital

Oct 10
There's Been No Shortage Of Growth Recently For British American Tobacco's (LON:BATS) Returns On Capital

British American Tobacco p.l.c.'s (LON:BATS) Intrinsic Value Is Potentially 45% Above Its Share Price

Sep 08
British American Tobacco p.l.c.'s (LON:BATS) Intrinsic Value Is Potentially 45% Above Its Share Price

Recent updates

There's Been No Shortage Of Growth Recently For British American Tobacco's (LON:BATS) Returns On Capital

Oct 10
There's Been No Shortage Of Growth Recently For British American Tobacco's (LON:BATS) Returns On Capital

British American Tobacco p.l.c.'s (LON:BATS) Intrinsic Value Is Potentially 45% Above Its Share Price

Sep 08
British American Tobacco p.l.c.'s (LON:BATS) Intrinsic Value Is Potentially 45% Above Its Share Price

British American Tobacco's (LON:BATS) Solid Earnings Have Been Accounted For Conservatively

Aug 07
British American Tobacco's (LON:BATS) Solid Earnings Have Been Accounted For Conservatively

British American Tobacco p.l.c.'s (LON:BATS) Price Is Out Of Tune With Revenues

Jul 14
British American Tobacco p.l.c.'s (LON:BATS) Price Is Out Of Tune With Revenues

Returns On Capital At British American Tobacco (LON:BATS) Have Stalled

May 20
Returns On Capital At British American Tobacco (LON:BATS) Have Stalled

This Is Why British American Tobacco p.l.c.'s (LON:BATS) CEO Compensation Looks Appropriate

Apr 09
This Is Why British American Tobacco p.l.c.'s (LON:BATS) CEO Compensation Looks Appropriate

Are Investors Undervaluing British American Tobacco p.l.c. (LON:BATS) By 46%?

Mar 03
Are Investors Undervaluing British American Tobacco p.l.c. (LON:BATS) By 46%?
User avatar

Investments In Glo Hyper Pro And Velo+ Will Strengthen Future Portfolio

New Categories expansion and investments in innovation aim to drive future revenue growth and diversify the company's portfolio.

British American Tobacco's (LON:BATS) Returns On Capital Are Heading Higher

Feb 06
British American Tobacco's (LON:BATS) Returns On Capital Are Heading Higher

British American Tobacco p.l.c. (LON:BATS) Not Lagging Industry On Growth Or Pricing

Dec 27
British American Tobacco p.l.c. (LON:BATS) Not Lagging Industry On Growth Or Pricing

British American Tobacco: Navigating a Complex Transition That Warrants a High Fair Value

Three Years Into The Future : GPB 45.77

Shareholder Returns

BATSGB TobaccoGB Market
7D6.8%5.0%-0.1%
1Y52.3%44.2%18.2%

Return vs Industry: BATS exceeded the UK Tobacco industry which returned 44.2% over the past year.

Return vs Market: BATS exceeded the UK Market which returned 18.2% over the past year.

Price Volatility

Is BATS's price volatile compared to industry and market?
BATS volatility
BATS Average Weekly Movement2.7%
Tobacco Industry Average Movement2.4%
Market Average Movement4.7%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: BATS has not had significant price volatility in the past 3 months compared to the UK market.

Volatility Over Time: BATS's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
190248,989Tadeu Marrocowww.bat.com

British American Tobacco p.l.c. provides tobacco and nicotine products to consumers in the Americas, Europe, the Asia-Pacific, the Middle East, Africa, and the United States. It offers vapour, heated, and modern oral nicotine products; combustible cigarettes; and traditional oral products, such as snus and moist snuff. The company provides its products under the Vuse, glo, Velo, Grizzly, Kodiak, Dunhill, Kent, Lucky Strike, Pall Mall, Rothmans, Newport, Natural American Spirit, and Camel brands.

British American Tobacco p.l.c. Fundamentals Summary

How do British American Tobacco's earnings and revenue compare to its market cap?
BATS fundamental statistics
Market capUK£90.16b
Earnings (TTM)UK£3.05b
Revenue (TTM)UK£25.60b
29.7x
P/E Ratio
3.5x
P/S Ratio

Is BATS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
BATS income statement (TTM)
RevenueUK£25.60b
Cost of RevenueUK£4.39b
Gross ProfitUK£21.21b
Other ExpensesUK£18.16b
EarningsUK£3.05b

Last Reported Earnings

Jun 30, 2025

Next Earnings Date

Feb 12, 2026

Earnings per share (EPS)1.40
Gross Margin82.86%
Net Profit Margin11.90%
Debt/Equity Ratio73.7%

How did BATS perform over the long term?

See historical performance and comparison

Dividends

5.8%
Current Dividend Yield
174%
Payout Ratio

Does BATS pay a reliable dividends?

See BATS dividend history and benchmarks
When do you need to buy BATS by to receive an upcoming dividend?
British American Tobacco dividend dates
Ex Dividend DateOct 02 2025
Dividend Pay DateNov 07 2025
Days until Ex dividend36 days
Days until Dividend pay date0 days

Does BATS pay a reliable dividends?

See BATS dividend history and benchmarks

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/11/06 18:49
End of Day Share Price 2025/11/06 00:00
Earnings2025/06/30
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

British American Tobacco p.l.c. is covered by 29 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David ColemanArgus Research Company
Michael SteereAvior Capital Markets
Gaurav JainBarclays