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British American Tobacco LSE:BATS Stock Report

Last Price

UK£35.88

Market Cap

UK£78.6b

7D

1.9%

1Y

50.0%

Updated

15 Jun, 2025

Data

Company Financials +

British American Tobacco p.l.c.

LSE:BATS Stock Report

Market Cap: UK£78.6b

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 42.3% below our estimate of its fair value

Earnings are forecast to grow 16.26% per year

Became profitable this year

Risk Analysis

Dividend of 6.7% is not well covered by earnings

Significant insider selling over the past 3 months

Has a high level of debt

Large one-off items impacting financial results


BATS Community Fair Values

Create Narrative

See what 256 others think this stock is worth. Follow their fair value or set your own to get alerts.

BATS logo
British American Tobacco
AN
AnalystHighTarget
Consensus Narrative from 11 Analysts

Urbanization And Rising Incomes Will Support New Categories

Key Takeaways Strong growth in reduced-risk products and global diversification position BAT for faster earnings and stable cash flows despite changing consumption trends. Significant cash flow supports aggressive buybacks, driving share price potential and shareholder value beyond mainstream analyst expectations.
View narrative
UK£44.00
FV
18.5% undervalued intrinsic discount
3.30%
Revenue growth p.a.
1users have liked this narrative
0users have commented on this narrative
3users have followed this narrative
3 days ago author updated this narrative
BATS logo
British American Tobacco
AN
AnalystConsensusTarget
Consensus Narrative from 11 Analysts

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

Key Takeaways New Categories expansion and investments in innovation aim to drive future revenue growth and diversify the company's portfolio. Operational efficiency initiatives and U.S. market focus are expected to enhance margins and drive revenue despite economic challenges.
View narrative
UK£35.59
FV
0.8% overvalued intrinsic discount
1.47%
Revenue growth p.a.
2users have liked this narrative
0users have commented on this narrative
148users have followed this narrative
3 days ago author updated this narrative
BATS logo
British American Tobacco
EV
evd101
Community Contributor

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
39.7% undervalued intrinsic discount
14.00%
Revenue growth p.a.
28users have liked this narrative
9users have commented on this narrative
37users have followed this narrative
7 months ago author updated this narrative
BATS logo
British American Tobacco
AN
AnalystLowTarget
Consensus Narrative from 11 Analysts

Strict Regulations In Australia And Bangladesh Will Sap Long-Term Potential

Key Takeaways Ongoing global regulatory tightening and the rise of illicit trade are eroding BAT's legal sales, compressing margins, and diminishing pricing power. Declining cigarette demand and ESG-driven divestment challenge BAT's revenue base, with alternative products and litigation risks further weighing on profitability and returns.
View narrative
UK£26.50
FV
35.4% overvalued intrinsic discount
0.29%
Revenue growth p.a.
0users have liked this narrative
0users have commented on this narrative
1users have followed this narrative
3 days ago author updated this narrative
View British American Tobacco 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£35.88
52 Week HighUK£36.18
52 Week LowUK£23.90
Beta0.15
1 Month Change12.58%
3 Month Change12.13%
1 Year Change50.00%
3 Year Change4.45%
5 Year Change13.17%
Change since IPO759.40%

Recent News & Updates

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

Recent updates

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%?
author-image

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 (LON:BATS) Shareholders Will Want The ROCE Trajectory To Continue

Oct 14
British American Tobacco (LON:BATS) Shareholders Will Want The ROCE Trajectory To Continue
author-image

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

Three Years Into The Future : GPB 45.77

British American Tobacco (LSE:BATS) Appoints New Chief Corporate Officer, Affirms Dividend Amid Growth

Sep 18
British American Tobacco (LSE:BATS) Appoints New Chief Corporate Officer, Affirms Dividend Amid Growth

Does British American Tobacco (LON:BATS) Have A Healthy Balance Sheet?

Sep 16
Does British American Tobacco (LON:BATS) Have A Healthy Balance Sheet?

Investors Holding Back On British American Tobacco p.l.c. (LON:BATS)

Aug 26
Investors Holding Back On British American Tobacco p.l.c. (LON:BATS)

The Return Trends At British American Tobacco (LON:BATS) Look Promising

Jun 20
The Return Trends At British American Tobacco (LON:BATS) Look Promising

Shareholder Returns

BATSGB TobaccoGB Market
7D1.9%1.7%0.1%
1Y50.0%46.9%6.3%

Return vs Industry: BATS exceeded the UK Tobacco industry which returned 46.9% over the past year.

Return vs Market: BATS exceeded the UK Market which returned 6.3% over the past year.

Price Volatility

Is BATS's price volatile compared to industry and market?
BATS volatility
BATS Average Weekly Movement3.2%
Tobacco Industry Average Movement3.2%
Market Average Movement5.8%
10% most volatile stocks in GB Market11.7%
10% least volatile stocks in GB Market3.3%

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£78.56b
Earnings (TTM)UK£3.03b
Revenue (TTM)UK£25.87b
26.0x
P/E Ratio
3.0x
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£25.87b
Cost of RevenueUK£4.57b
Gross ProfitUK£21.30b
Other ExpensesUK£18.27b
EarningsUK£3.03b

Last Reported Earnings

Dec 31, 2024

Next Earnings Date

Jul 31, 2025

Earnings per share (EPS)1.38
Gross Margin82.33%
Net Profit Margin11.70%
Debt/Equity Ratio72.7%

How did BATS perform over the long term?

See historical performance and comparison

Dividends

6.7%
Current Dividend Yield
176%
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 DateJun 26 2025
Dividend Pay DateAug 01 2025
Days until Ex dividend11 days
Days until Dividend pay date47 days

Does BATS pay a reliable dividends?

See BATS dividend history and benchmarks

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/06/15 00:43
End of Day Share Price 2025/06/13 00:00
Earnings2024/12/31
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 42 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
Ishan MajumdarBaptista Research