British American Tobacco p.l.c.

OTCPK:BTAF.F Stock Report

Market Cap: US$84.5b

British American Tobacco Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings 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.

Discounted Cash Flow
Simply Wall St
US$73.18
Fair Value
49.3% undervalued intrinsic discount
10
Number of Analysts

Below Fair Value: BTAF.F ($37.1) is trading below our estimate of fair value ($73.18)

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 profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for BTAF.F. This is calculated by dividing BTAF.F's market cap by their current earnings.
What is BTAF.F's PE Ratio?
PE Ratio22x
EarningsUK£3.03b
Market CapUK£66.72b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BTAF.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.6x
MO Altria Group
8.2x-5.5%US$90.4b
PM Philip Morris International
33.5x14.1%US$232.9b
TPB Turning Point Brands
25.8x15.3%US$1.2b
UVV Universal
10.8xn/aUS$1.3b
BTAF.F British American Tobacco
22x15.8%US$66.7b

Price-To-Earnings vs Peers: BTAF.F is expensive based on its Price-To-Earnings Ratio (22x) compared to the peer average (19.6x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
BTAF.F 22.0xIndustry Avg. 11.9xNo. of Companies10PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BTAF.F is expensive based on its Price-To-Earnings Ratio (22x) compared to the Global Tobacco industry average (11.4x).

Price to Earnings Ratio vs Fair Ratio

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

BTAF.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22x
Fair PE Ratio33.9x

Price-To-Earnings vs Fair Ratio: BTAF.F is good value based on its Price-To-Earnings Ratio (22x) compared to the estimated Fair Price-To-Earnings Ratio (33.9x).

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$37.10
US$43.49
+17.2%
15.3%US$55.39US$33.99n/a10
Feb ’26US$39.31
US$41.66
+6.0%
16.4%US$54.96US$33.73n/a10
Jan ’26US$35.24
US$41.36
+17.4%
16.0%US$56.08US$34.42n/a10
Dec ’25US$38.42
US$40.46
+5.3%
17.5%US$56.08US$31.86n/a10
Nov ’25US$34.28
US$40.63
+18.5%
18.7%US$57.13US$32.46n/a10
Oct ’25US$36.19
US$42.57
+17.6%
17.4%US$58.86US$34.11n/a10
Sep ’25US$36.56
US$40.49
+10.7%
17.2%US$56.44US$32.07n/a12
Aug ’25US$36.48
US$39.93
+9.5%
17.9%US$56.56US$32.13n/a12
Jul ’25US$30.15
US$38.77
+28.6%
18.9%US$55.63US$30.34n/a12
Jun ’25US$30.60
US$39.06
+27.6%
18.7%US$55.89US$30.48n/a12
May ’25US$30.80
US$38.51
+25.0%
19.9%US$54.44US$29.69n/a12
Apr ’25US$30.20
US$39.49
+30.8%
19.9%US$55.97US$30.53n/a12
Mar ’25US$29.70
US$39.20
+32.0%
19.2%US$55.43US$30.23n/a13
Feb ’25US$29.54
US$39.65
+34.2%
18.9%US$55.89US$30.49US$39.3113
Jan ’25US$29.28
US$40.02
+36.7%
17.8%US$54.30US$29.04US$35.2415
Dec ’24US$31.39
US$44.56
+42.0%
15.4%US$59.73US$34.95US$38.4215
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
Analyst Price Target
Consensus Narrative from 10 Analysts
US$42.23
Fair Value
12.2% undervalued intrinsic discount
10
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/20 12:39
End of Day Share Price 2025/02/20 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