British American Tobacco p.l.c.

BRSE:BATS Stock Report

Market Cap: CHF 72.9b

British American Tobacco Valuation

Is BATS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BATS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BATS (CHF39) is trading below our estimate of fair value (CHF95.45)

Significantly Below Fair Value: BATS is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BATS?

Other financial metrics that can be useful for relative valuation.

BATS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.8x
Enterprise Value/EBITDA7.8x
PEG Ration/a

Price to Sales Ratio vs Peers

How does BATS's PS Ratio compare to its peers?

The above table shows the PS ratio for BATS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5.1x
NESN Nestlé
2.4x3.3%CHF 225.2b
LISN Chocoladefabriken Lindt & Sprüngli
4.6x6.6%CHF 24.9b
MO Altria Group
4.5x1.0%US$90.4b
ITC ITC
8.9x6.6%₹6.4t
BATS British American Tobacco
2.5x2.0%CHF 65.5b

Price-To-Sales vs Peers: BATS is good value based on its Price-To-Sales Ratio (2.5x) compared to the peer average (5.1x).

Price to Earnings Ratio vs Industry

How does BATS's PE Ratio compare vs other companies in the Global Tobacco Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a19.5%
 n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a19.5%
 n/an/an/a
No more companies

Price-To-Sales vs Industry: BATS is expensive based on its Price-To-Sales Ratio (2.5x) compared to the Global Tobacco industry average (2.2x).

Price to Sales Ratio vs Fair Ratio

What is BATS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BATS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.5x
Fair PS Ratio5x

Price-To-Sales vs Fair Ratio: BATS is good value based on its Price-To-Sales Ratio (2.5x) compared to the estimated Fair Price-To-Sales Ratio (5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst BATS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
CHF 35.82
0%
16.8%CHF 48.92CHF 28.35n/a12
Sep ’25CHF 39.00
CHF 35.62
-8.7%
17.2%CHF 48.84CHF 27.75n/a13
Aug ’25CHF 39.00
CHF 35.68
-8.5%
18.0%CHF 49.64CHF 28.20n/a13
Jul ’25CHF 39.00
CHF 35.69
-8.5%
19.0%CHF 50.24CHF 27.40n/a13
Jun ’25CHF 39.00
CHF 36.36
-6.8%
18.8%CHF 51.05CHF 27.85n/a13
May ’25CHF 38.15
CHF 35.68
-6.5%
19.7%CHF 49.55CHF 27.03n/a13
Apr ’25CHF 38.15
CHF 35.71
-6.4%
19.7%CHF 49.72CHF 27.12n/a13
Mar ’25CHF 38.15
CHF 35.16
-7.8%
19.1%CHF 48.90CHF 26.68n/a14
Feb ’25CHF 38.15
CHF 34.26
-10.2%
18.9%CHF 48.29CHF 26.34n/a13
Jan ’25CHF 38.15
CHF 34.88
-8.6%
17.8%CHF 47.32CHF 25.31n/a15
Dec ’24CHF 38.15
CHF 38.74
+1.5%
15.4%CHF 51.93CHF 30.38n/a15
Nov ’24CHF 38.15
CHF 38.92
+2.0%
15.0%CHF 51.97CHF 30.41n/a15
Oct ’24CHF 38.15
CHF 39.04
+2.3%
14.9%CHF 52.23CHF 30.56n/a15
Sep ’24CHF 38.15
CHF 39.65
+3.9%
14.6%CHF 52.69CHF 30.83CHF 39.0016
Aug ’24CHF 38.15
CHF 39.54
+3.6%
14.4%CHF 52.26CHF 30.58CHF 39.0016
Jul ’24CHF 38.15
CHF 40.99
+7.4%
13.8%CHF 53.62CHF 31.37CHF 39.0016
Jun ’24CHF 38.15
CHF 42.38
+11.1%
11.5%CHF 52.83CHF 31.47CHF 39.0016
May ’24CHF 38.15
CHF 42.48
+11.3%
9.0%CHF 52.37CHF 34.54CHF 38.1517
Apr ’24CHF 38.15
CHF 43.14
+13.1%
8.7%CHF 52.95CHF 34.92CHF 38.1517
Mar ’24CHF 38.15
CHF 43.30
+13.5%
7.3%CHF 52.81CHF 39.33CHF 38.1518
Feb ’24CHF 38.15
CHF 44.71
+17.2%
7.7%CHF 52.86CHF 39.36CHF 38.1518
Jan ’24CHF 38.00
CHF 46.30
+21.8%
8.4%CHF 55.12CHF 40.19CHF 38.1518
Dec ’23CHF 35.00
CHF 46.33
+32.4%
8.4%CHF 55.07CHF 40.15CHF 38.1518
Nov ’23CHF 35.00
CHF 47.31
+35.2%
9.2%CHF 55.13CHF 40.20CHF 38.1518
Oct ’23CHF 35.39
CHF 43.71
+23.5%
8.1%CHF 49.29CHF 37.18CHF 38.1518
Sep ’23CHF 42.50
CHF 46.58
+9.6%
8.2%CHF 52.66CHF 39.72CHF 38.1517

Analyst Forecast: Target price is less than 20% higher than the current share price.

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