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STOCK COMPARISON

British American Tobacco p.l.c. vs PepsiCo: Fair Value & Quality

Both stocks run through our valuation models. Here is how British American Tobacco p.l.c. (BTI) and PepsiCo (PEP) compare, as of Sep 4, 2026.

As of Sep 4, 2026, Fair Value Calculator sees British American Tobacco p.l.c. as the more attractively valued of the two: British American Tobacco p.l.c. trades at $55.97 versus a fair value of $61.07 (+9%), while PepsiCo trades at $140 versus $107 (-24%).
British American Tobacco p.l.c.
BTI · USD · Consumer Staples
+9%
upside to fair value
fairly valued
Price$55.97
Fair Value$61.07
Quality74/100
PepsiCo
PEP · USD · Consumer Staples
-24%
upside to fair value
overvalued
Price$140
Fair Value$107
Quality63/100
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Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

British American Tobacco p.l.c.PepsiCo
Valuation
12.1×P/E (TTM)22.0×
5.06×P/S (TTM)1.97×
2.70×P/B9.23×
13.4×EV/EBITDA11.9×
1.57×PEG1.53×
+9.1%Fair value upside−23.6%
4.4%Dividend yield4.1%
$2.45Dividend per share$5.69
Profitability
35%Operating margin17%
1.01×EBIT margin trend (5Y)1.01×
16%Return on equity44%
5%Return on assets9%
Growth
0%Revenue growth (YoY)9%
-2.5%Avg. growth/yr (3Y)2.8%
-0.1%Avg. growth/yr (5Y)5.9%
+9.0%Value creation/yr+9.6%
Balance & size
5.5×Interest coverage (EBIT/interest)12.0×
0.65×Debt / equity2.07×
$130BMarket cap$188B
weakGrowth qualityhealthy

PepsiCo leads: 6 to 9 metric wins.

Dash = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

British American Tobacco p.l.c.of which business quality 67 · market factors 57 PepsiCoof which business quality 59 · market factors 51
ProfitabilityMargins and returns on capital today
51
69
Quality GrowthAre margins and returns improving?
65
32
CashflowEarnings quality: real cash, not paper profit
73
52
Fin. StrengthBalance sheet, leverage, solvency risk
46
49
InvestmentDisciplined investing over empire-building
100
77
Low VolatilityCalm price path (market factor)
89
93
MomentumPrice trend over the last 3–12 months (market factor)
44
34
52W MomentumDistance to the 52-week high (market factor)
43
30
Net IssuanceBuybacks instead of dilution
92
85

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyBritish American Tobacco p.l.c.Price $55.97PepsiCoPrice $140
DCF Models+79%above the price$100-42%below the price$81.79
Earnings-Based+125%above the price$126-64%below the price$50.16
Dividend Discount-25%below the price$41.76-33%below the price$93.30
Multiples+11%close to the price$61.97-18%below the price$115
Asset-Based-73%below the price$14.87-93%below the price$10.01
Growth DCF-12%close to the price$49.43-48%below the price$73.16
Economic Profit-40%below the price$33.45-56%below the price$61.14
Growth Earnings+194%above the price$165-24%below the price$107
Minimum-73%below the price$14.87-93%below the price$10.01
Maximum+194%above the price$165-18%below the price$115
Median0%close to the price$55.70-45%below the price$77.47
Geometric mean+4%close to the price$58.22-56%below the price$61.70

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

British American Tobacco p.l.c.: 11 of 26 models see the stock below the current price.

PepsiCo: 24 of 26 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

British American Tobacco p.l.c.
Bear $44.26Fair Value $61.07Bull $97.65
$55.97 = current price (white tick)
PepsiCo
Bear $56.05Fair Value $107Bull $158
$140 = current price (white tick)

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

British American Tobacco p.l.c. · Consumer Staples

Quality score74 · Top 25%
Fair value upside+9% · above median

PepsiCo · Consumer Staples

Quality score63 · above median
Fair value upside-24% · below median

Bottom line

As of Sep 4, 2026, Fair Value Calculator sees British American Tobacco p.l.c. as the more attractively valued of the two: British American Tobacco p.l.c. trades at $55.97 versus a fair value of $61.07 (+9%), while PepsiCo trades at $140 versus $107 (-24%).

British American Tobacco p.l.c. has the higher quality score (74/100).

See the full analysis →
British American Tobacco p.l.c. · PepsiCo

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.