BTI
British American Tobacco plc
$61.48
▼ 1.6%Updated Today 3:42 PM ET
BTI at a glance — five pillars scored 0–100 from real filed financials.
Overall: Favorable · 67/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 26.6% over the last 12 months
Market Cap
$126.72B
P/E
12.94x
Forward P/E (est.)
9.24x
ROE
6.4%
Revenue Growth
-1.0%
EPS Growth
92.5%
Profit Margin
30.3%
FCF Yield
7.1%
Debt / Equity
0.72x
ROIC
10.0%
Interest Coverage
6.03x
Current Ratio
0.87x
Dividend Yield
5.3%
Implied Growth (rev. DCF)
3.0%
Rating Score
67/100
British American Tobacco plc (BTI) is a large-cap company in the Tobacco industry, part of the Tobacco sector of the S&P 500, with a market value around $126.72B.
In its latest reported year it generated about $32.52B in revenue and $9.86B in net profit.
Our model rates BTI Favorable (67/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
The numbers don't show a durable competitive advantage — margins, growth, or returns on capital have been unstable or thin. Great returns are still possible; they just aren't protected.
-2.7% average over the last 3 years
±28.7 pts around 24.7% across 10 years
grew in 4 of the last 9 year-over-year periods
positive in 10 of 10 years
10.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what BTI's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. BTI trades near $61.48, above its 50-day average ($61.22) and 200-day average ($57.82). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 45 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. BTI's is $1.30 (~2.1% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month BTI found buyers near $58.23 (support) and sellers near $63.14 (resistance); its 52-week range is $47.55–$67.30. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.3× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
-0.1%
Revenue moved from $17.95B in 2016 to $32.52B in 2025, a 6.8% compound annual growth rate. The most recent year declined 1.0% year over year. Shrinking revenue is worth a closer look — is it cyclical or structural?
Gross Margin
83.5%
Operating Margin
39.0%
Net Margin
30.3%
ROE
6.4%
British American Tobacco plc keeps about 30.3% of each sales dollar as net profit, with a 83.5% gross margin and 39.0% operating margin. Return on equity is 6.4% and return on invested capital about 10.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$40.27B
Net Debt
$35.41B
Net Debt / EBITDA
2.79x
Debt / Equity
0.72x
Leverage: debt-to-equity is 0.7x, and operating profit covers interest about 6.0x, with a current ratio of 0.9x. That is a moderate, manageable debt load for most businesses. It carries roughly $40.27B of total debt against $4.86B of cash.
Operating CF
$8.05B
Free Cash Flow
$7.35B
FCF Margin
22.6%
In the latest year British American Tobacco plc produced about $8.05B of operating cash flow and $7.35B of free cash flow after capital spending. That is a free-cash-flow yield of about 7.1% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The dividend is being paid, but coverage or consistency is thinner than an income investor should rely on without a closer look.
Dividend yield
5.3%
Per share (latest FY)
$3.11
Total paid (latest FY)
$6.65B
History on record
10 years
dividend uses 90% of free cash flow
67% of net income paid out
total dividends increased 9 years in a row
no cuts in the last 10 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
12.94x
P/S
3.91x
P/B
1.91x
EV / EBITDA
10.18x
BTI trades at 12.9x trailing earnings (about 9.2x on estimated forward earnings), 3.9x sales, and 1.9x book value. Reverse-engineering today's price implies the market expects roughly 3.0% long-term free-cash-flow growth. That is an undemanding multiple — potentially cheap if the business is stable.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$41.10
Current price
$61.48
Starting FCF (latest 10-K)
$7.35B
Growth, years 1–5
-1.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $61.48 today · expected CAGR -7% – 3%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $33.50B | $34.51B | $35.54B | $36.61B | $37.71B |
| Net income | $10.05B | $10.35B | $10.66B | $10.98B | $11.31B |
| EPS | $4.88 | $5.02 | $5.17 | $5.33 | $5.49 |
| Share price (low) | $39.01 | $40.18 | $41.38 | $42.63 | $43.91 |
| Share price (high) | $63.39 | $65.29 | $67.25 | $69.27 | $71.35 |
| CAGR (low–high) | -37% / 3% | -19% / 3% | -12% / 3% | -9% / 3% | -7% / 3% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for BTI:
- High net margins (30.3%) point to pricing power or efficiency.
- Healthy free-cash-flow yield (~7.1%) funds buybacks and dividends.
- Pays a 5.3% dividend on top of any price gains.
- Our model's overall read is Favorable (67/100).
The case against BTI:
- Revenue growth is slow/negative (-1.0%), limiting the upside engine.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Growth risk — sluggish revenue (-1.0%) leaves little margin for execution missteps.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: British American Tobacco plc is a large-cap tobacco business with shrinking revenue, with solid profitability, and a heavier debt load to watch. It trades at 12.9x earnings, which our model scores Favorable (67/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 19 Wall Street analysts covering BTI recommend (July 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more positive over the last three months (+3 pts of buy ratings).
Latest SEC Filings
BTI's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
BTI — frequently asked questions
Is BTI a good stock to buy?
We don't give buy or sell advice. Our model rates British American Tobacco plc Favorable (67/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is BTI's rating on The Stocks School?
British American Tobacco plc currently scores 67/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does BTI's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from British American Tobacco plc's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for BTI calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this BTI analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell BTI. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.