British American Tobacco p.l.c. (BTI) Stock Analysis — Fair Value, Risk & Moat Rating

British American Tobacco p.l.c. (BTI) stock price is $56.17 as of the latest market close, traded on the NYSE exchange.

British American Tobacco p.l.c. provides tobacco and nicotine products to consumers in the United States, Europe, Latin America, Canada, the Asia-Pacific, the Middle East, Central Asia, Caucasus, and Africa. It offers vapour products; heated products, which consists of a battery-powered device and a plant-based substance consumable that is heated; modern oral products, such as nicotine pouches; combustibles, including cigarette sticks and other tobacco stick products; traditional oral products, such as snus and moist snuff; and fine cut/roll-your-own tobacco products.

British American Tobacco p.l.c. has a market capitalization of $123.35B, classifying it as a large-cap stock in the Consumer Defensive sector.

British American Tobacco p.l.c. operates in the Consumer Defensive sector, specifically within the Tobacco industry. It trades on the NYSE under the ticker symbol BTI.

Based on our valuation model, British American Tobacco p.l.c. trades 16.1% above our fair value estimate — potentially overvalued.

• FairValueLabs Fair Value: $48.38
• Current Price: $56.17
• Valuation Zone: Overvalued

Based on 5 Wall Street analysts, the consensus price target for British American Tobacco p.l.c. is $60.90, implying upside of 8.4% from the current price.

• Analyst High Target: $72.00
• Analyst Low Target: $40.50

Note: Analyst targets are shown for reference and are not used in our valuation model.

Here are the analyst consensus growth estimates for British American Tobacco p.l.c.:

• Revenue growth (current year est.): 2.9%
• EPS growth (current year est.): 1.8%
• Revenue growth (next year est.): 3.3%
• EPS growth (next year est.): 8.2%

The price-to-earnings ratio measures how much investors pay per dollar of earnings:

• Trailing P/E (last 12 months): 11.9x
• Forward P/E (next 12 months est.): 10.6x
• FairValueLabs Fair P/E: 10.1x

British American Tobacco p.l.c. has a beta of 0.12, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.

British American Tobacco p.l.c.'s balance sheet shows:

• Total Cash: $3.84B
• Total Debt: $35.07B
• Net Cash Position: $-31.23B

A positive net cash position means the company holds more cash than debt, reducing financial risk.

British American Tobacco p.l.c. generated $2.99B in trailing twelve-month free cash flow (from $6.34B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.

Yes, British American Tobacco p.l.c. pays a regular dividend. Here are the key metrics:

• Dividend Yield: 4.5%
• Payout Ratio: 68.7%
• Consecutive Years Paid: 40
• 5-Year Dividend Growth: -22.5%
• FairValueLabs Safety Grade: A

British American Tobacco p.l.c.'s Altman Z-Score is 2.13, placing it in the gray zone (1.8–3.0) — some financial uncertainty. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.

British American Tobacco p.l.c. scores 2.6/5 stars (Narrow moat · eroding) in our moat analysis:

• ROIC Stability: 2/5
• Gross Margin Trend: 3/5
• Switching Costs: 3/5

A score above 3.5 suggests meaningful pricing power and a defensible market position.

British American Tobacco p.l.c.'s return on equity is 15.8%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.

BTI shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:

1. Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
2. Search for ticker symbol BTI
3. Place a market or limit order for your desired number of shares

This is not investment advice. Always do your own research before buying any stock.

FairValueLabs classifies British American Tobacco p.l.c. as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.

The current CEO of British American Tobacco p.l.c. is Mr. Tadeu Luiz Marroco.

Earnings per share measures the company's profit allocated to each outstanding share:

• Trailing EPS (last 12 months): $4.72
• Forward EPS (next 12 months est.): $5.29
• Analyst consensus EPS (this year): $4.89
• Analyst consensus EPS (next year): $5.29