QualityDipStocks / Consumer Staples · Tobacco
British American Tobacco Industries p.l.c. ADR BTI
Outside our quality screen, so we don’t track its dips. It’s 8% below its 52-week high.
Outside our quality screen, trading near our fair value estimate.
- Fair value est.
- $56.08−9%
- Market Value
- —
- Off 52-wk high
- −8%
- Risk vs market
- Lowbeta 0.11
4 bullish · 4 bearish See why
Key levels
Every level vs today’s $61.52
- 52-wk lowlowest close, 1 year$51.19−16.8%
- Fair value est.base case$56.08−8.8%
- PriceFri Oct 30 close$61.52you are here
- 52-wk highhighest close, 1 year$66.70+8.4%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 3.0% ±2 points. Bear = 10.5% and 1.0%; bull = 8.5% and 5.0% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, BTI’s free cash flow would need to grow about 5% a year for five years; our estimate uses 3%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much BTI moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Has moved mostly independently of the market, but its own price swings are 2.0× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.11
- Volatility
- 26% vs 13% SPY
- Correlation SPY
- 0.06
- Correlation QQQ
- −0.11
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 4 of 5
ProfitabilityOperating margin widened to 39.0% in FY2025 from −57.7% in FY2023 (SEC filings).
ValuationP/E of 13.0× vs a 21.7× median for the 36 Consumer Staples companies we cover.
ValuationFree-cash-flow yield of 5.8% (price / FCF 17.4×): $7.8B of free cash in the last 12 months.
ProfitabilityReturn on equity of 17% over the last 12 months, up 45 points in two years.
Top bearish points 4 of 5
Cash returnsFree cash flow fell 40% over the last 12 months vs the 12 months before.
GrowthSales shrank 3% a year from FY2022 to FY2025.
GrowthSales fell 1.0% over the last 12 months, below the 3.5% median for the 39 Consumer Staples companies we cover.
QualityDoesn’t pass our quality screen: sales down vs the year-ago quarter.
Who’s talking about it
Notable investors, executives, analysts and public figures on British American Tobacco Industries p.l.c. ADR in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Consumer Staples
All fundamentals
P/E 13.0 · FCF yield 5.8% · ROE 17%
Valuation
- P/E
- 13.0×Consumer Staples median 21.7×
- Price / FCF
- 17.4×
- FCF yield
- 5.8%
- EV / EBITDA
- n/aD&A or debt not tagged in SEC data
- Price / sales
- 3.93×
- Price / book
- 2.19×
- Market cap
- $135Bprice × diluted shares
- Enterprise value
- n/anot reported in its SEC filings
Growth
- Revenue, 12 months
- $34.4B
- Sales growth, 12 months
- −1.0%vs the 12 months before
- Sales growth, 3 yrs
- −2.5%/yrfrom FY2022
- Diluted EPS, 12 months
- $3.49
- EPS growth, last FY
- +156.7%
- Net income, 12 months
- $10.4B
- Net income growth
- +153%12 months vs before
Profitability
- Gross margin
- n/agross profit isn't reported (common for service and financial companies)
- Operating margin
- 39.0%
- Net margin
- 30.3%
- FCF margin
- 22.6%
- Return on equity
- 17%
- Return on invested capital
- n/aoperating income, debt, equity or cash not tagged
Balance sheet
- Cash & short-term inv.
- $5.1B
- Total debt
- n/anot reported in its SEC filings
- Net cash
- n/acash or debt not tagged in SEC data
- Debt / equity
- n/adebt or equity not tagged in SEC data
- Interest coverage
- 6.0×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $7.8B
- FCF growth, 12 months
- −40%
- Dividend yield
- n/ano dividend payments tagged
- Payout ratio
- n/anot reported in its SEC filings
- Buybacks, 12 months
- $1.5B1.1% of market cap
- Share count, 1 year
- n/ano quarterly diluted share count
- Stock-based comp
- n/anot reported in its SEC filings
Trailing 12 months to Dec 31, 2025; balance sheet at Dec 31, 2025. From British American Tobacco Industries p.l.c. ADR’s SEC filings, reported in GBP and converted to US dollars. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $56.08 · FCF value $78.24
Assumes 3.0% growth for 5 years (revenue grew -2.5% a year FY22–FY25; floored at 3%), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $3.54 a share (fiscal year to Dec 31, 2025, converted from GBP at 1.344), from the 20-F filed Feb 13, 2026. Net debt $42.0B, not deducted.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
Momentum & 52-week range
RSI 69 · 5 days +3.4%
The business
FCF $6.7B · Sales −1%
- Free cash flow, 12 months$6.7B
- Free-cash-flow yield5.1%
- Free-cash-flow margin26%
- Gross margin84%
- Operating margin42%
- Return on invested capital18%
- Return on equity14%
- Sales growth (last fiscal year vs prior)−1%
- Net debt / EBITDA2.7×
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
BTI is outside our quality screen
One text when a published rule fires on one of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.