British American Tobacco p.l.c.

OTCPK:BTAF.F Stock Report

Market Cap: US$82.1b

British American Tobacco Valuation

Is BTAF.F 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 BTAF.F when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BTAF.F ($37.06) is trading below our estimate of fair value ($81.95)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BTAF.F?

Key metric: As BTAF.F is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for BTAF.F. This is calculated by dividing BTAF.F's market cap by their current revenue.
What is BTAF.F's PS Ratio?
PS Ratio2.5x
SalesUK£26.18b
Market CapUK£65.49b

Price to Sales Ratio vs Peers

How does BTAF.F's PS Ratio compare to its peers?

The above table shows the PS ratio for BTAF.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.3x
MO Altria Group
4.7x1.0%US$95.0b
PM Philip Morris International
5.4x6.6%US$204.0b
UVV Universal
0.5xn/aUS$1.4b
TPB Turning Point Brands
2.7x3.3%US$1.1b
BTAF.F British American Tobacco
2.5x1.9%US$65.5b

Price-To-Sales vs Peers: BTAF.F is good value based on its Price-To-Sales Ratio (2.5x) compared to the peer average (3.3x).

Price to Sales Ratio vs Industry

How does BTAF.F's PS Ratio compare vs other companies in the US Tobacco Industry?

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
UVV Universal
0.5xn/aUS$1.37b
PYYX Pyxus International
0.03xn/aUS$61.77m
XXII 22nd Century Group
0.3xn/aUS$4.59m
HPCO Hempacco
0.03xn/aUS$133.26k
No more companies available in this PS range
BTAF.F 2.5xIndustry Avg. 2.1xNo. of Companies4PS0246810+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: BTAF.F is expensive based on its Price-To-Sales Ratio (2.5x) compared to the Global Tobacco industry average (2.1x).

Price to Sales Ratio vs Fair Ratio

What is BTAF.F'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.

BTAF.F PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.5x
Fair PS Ratio9.1x

Price-To-Sales vs Fair Ratio: BTAF.F is good value based on its Price-To-Sales Ratio (2.5x) compared to the estimated Fair Price-To-Sales Ratio (9.1x).

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 BTAF.F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$37.06
US$39.21
+5.8%
18.7%US$55.13US$31.33n/a10
Nov ’25US$34.28
US$40.47
+18.1%
18.7%US$56.90US$32.33n/a10
Oct ’25US$36.19
US$43.37
+19.8%
17.3%US$58.86US$34.11n/a11
Sep ’25US$36.56
US$41.16
+12.6%
17.2%US$56.44US$32.07n/a13
Aug ’25US$36.48
US$40.65
+11.4%
18.0%US$56.56US$32.13n/a13
Jul ’25US$30.15
US$39.52
+31.1%
19.0%US$55.63US$30.34n/a13
Jun ’25US$30.60
US$39.80
+30.1%
18.8%US$55.89US$30.48n/a13
May ’25US$30.80
US$39.20
+27.3%
19.7%US$54.44US$29.69n/a13
Apr ’25US$30.20
US$40.21
+33.1%
19.7%US$55.97US$30.53n/a13
Mar ’25US$29.70
US$39.85
+34.2%
19.1%US$55.43US$30.23n/a14
Feb ’25US$29.54
US$39.65
+34.2%
18.9%US$55.89US$30.49n/a13
Jan ’25US$29.28
US$40.02
+36.7%
17.8%US$54.30US$29.04n/a15
Dec ’24US$31.39
US$44.56
+42.0%
15.4%US$59.73US$34.95n/a15
Nov ’24US$29.80
US$42.85
+43.8%
15.0%US$57.22US$33.48US$34.2815
Oct ’24US$31.87
US$43.49
+36.5%
14.9%US$58.19US$34.05US$36.1915
Sep ’24US$32.76
US$45.03
+37.4%
14.6%US$59.83US$35.01US$36.5616
Aug ’24US$34.03
US$45.45
+33.6%
14.4%US$60.08US$35.16US$36.4816
Jul ’24US$33.27
US$45.91
+38.0%
13.8%US$60.05US$35.13US$30.1516
Jun ’24US$31.97
US$46.79
+46.3%
11.5%US$58.32US$34.75US$30.6016
May ’24US$37.30
US$47.37
+27.0%
9.0%US$58.40US$38.52US$30.8017
Apr ’24US$35.46
US$47.00
+32.5%
8.7%US$57.68US$38.05US$30.2017
Mar ’24US$37.57
US$46.02
+22.5%
7.3%US$56.13US$41.80US$29.7018
Feb ’24US$38.96
US$49.20
+26.3%
7.7%US$58.16US$43.31US$29.5418
Jan ’24US$40.14
US$49.83
+24.1%
8.4%US$59.32US$43.26US$29.2818
Dec ’23US$41.58
US$49.45
+18.9%
8.4%US$58.77US$42.85US$31.3918
Nov ’23US$39.69
US$47.30
+19.2%
9.2%US$55.12US$40.19US$29.8018

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

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