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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 Oct 19, 2026.

As of Oct 19, 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 $60.00 versus a fair value of $96.20 (+60.3%), while PepsiCo trades at $131 versus $96.95 (−26.3%).
British American Tobacco p.l.c.
BTI · USD · Consumer Staples
+60.3%
upside to fair value
undervalued
Price$60.00
Fair Value$96.20
Quality74/100
PepsiCo
PEP · USD · Consumer Staples
−26.3%
upside to fair value
overvalued
Price$131
Fair Value$96.95
Quality63/100
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Head-to-head numbers

Green is the better side of a row, red the weaker one (for valuation multiples: lower = cheaper). Grey rows are for reference only and are not scored.

betterweakerfor reference, not scored

British American Tobacco p.l.c.PepsiCo
Valuation
13.0×P/E (TTM)17.3×
16.4×P/E ex one-offs (FY2025)18.7×
11.5×Forward P/E (FY2027)14.7×
n/aMedian P/E at FY-end (10 FY, ex one-offs where documented)23.3×
5.15×P/S (TTM)1.86×
2.75× · book value is mostly goodwillP/B8.82× · book value is mostly goodwill
13.6×EV/EBITDA11.3×
1.57×PEG1.34×
+60.3%Fair value upside−26.3%
4.1%Dividend yield4.4%
$2.45Dividend per share$5.75
Profitability
34.6%Operating margin16.8%
1.01×EBIT margin trend (5Y)1.01×
15.8%Return on equity51.5%
7.1%Return on assets7.7%
Growth
0.1%Revenue growth (YoY)6.4%
-2.5%Avg. growth/yr (3Y)2.8%
-0.1%Avg. growth/yr (5Y)5.9%
+7.2%Value creation/yr+9.1%
Balance & size
5.5×Interest coverage (EBIT/interest)12.0×
0.65×Debt / equity2.07×
$132BMarket cap$180B
weakGrowth qualityhealthy
The P/E excluding one-off items is only shown where the special items are documented in the accounts (our own raw data or SEC filings). If one side lacks it, the reported P/E stays scored.
PepsiCo, median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 9 of the years ex one-offs: 23.3.
Forward P/E: price divided by the analyst consensus for the first fiscal year that has not started yet. The current year carries special items from quarters already reported.

PepsiCo leads: 4 to 10 metric wins.

n/a = 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. PepsiCo
ProfitabilityHow much profit the company makes from its sales and capital
51
69
Quality GrowthAre margins and returns getting better?
65
32
CashflowDo the profits arrive as real cash?
73
52
Financial strengthDebt, balance sheet and risk of trouble
46
49
InvestmentDoes it invest with discipline instead of growing at any price?
100
77
Low VolatilityHow calm the share price moves, does not count
88
94
MomentumPrice trend of the last 3 to 12 months, does not count
48
30
Near the 52-week highDistance to the 52-week high, does not count
63
21
New sharesBuys back shares or issues new ones?
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 $60.00PepsiCoPrice $131
DCF Models+83.2%above the price$110−26.9%below the price$96.13
Earnings-Based+109.8%above the price$126−57.8%below the price$55.52
Dividend Discount−18.5%below the price$48.90−16.8%below the price$109
Multiples+1.8%close to the price$61.07−3.7%close to the price$127
Growth DCF+25.4%above the price$75.27−30.9%below the price$90.89
Economic Profit−31.0%below the price$41.41−47.7%below the price$68.76
Growth Earnings+174.4%above the price$165−18.7%below the price$107
Minimum−31.0%below the price$41.41−57.8%below the price$55.52
Maximum+174.4%above the price$165−3.7%close to the price$127
Median+25.4%above the price$75.27−26.9%below the price$96.13
Geometric mean+33.5%above the price$80.13−31.2%below the price$90.41

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.: 10 of 24 models see the stock below the current price.

PepsiCo: 21 of 24 models see the stock below the current price.

Scenario ranges

From our cautious bear scenario to the optimistic bull scenario. The white tick is the current price (value above it), the green tick the fair value (value below it): if the price sits left of the fair value, there is room to rise.

British American Tobacco p.l.c.
Price $60.00
Fair Value $96.20
Bear $46.79Bull $214
PepsiCo
Price $131
Fair Value $96.95
Bear $54.86Bull $156

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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+60.3% · Top 25%

PepsiCo · Consumer Staples

Quality score63 · above median
Fair value upside−26.3% · below median

Bottom line

As of Oct 19, 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 $60.00 versus a fair value of $96.20 (+60.3%), while PepsiCo trades at $131 versus $96.95 (−26.3%).

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

Open British American Tobacco p.l.c. live analysis →

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