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British American Tobacco p.l.c. (BATS) Fair Value & Analysis

Consumer Defensive · GB · Market cap 95.7B GBX

BA British American Tobacco p.l.c. BATS · LSE
Price£45.85
Fair Value£41.73
Upside-9.0%
Quality95/100
Evidence: High Range £25.35 – £77.24

Fair value as of: Jun 24, 2026

From 25 valuation models · updated 6 days ago

Share price +1.9% over the past month.

Price vs Fair Value (12 months)

£48.64 £32.06 Fair Value £41.73 Jul 2025 Jun 2026

12‑month range £32.06 – £48.64 · fair‑value band £25.35 – £77.24 · the £45.85 price screens above the £41.73 fair value. As of Jun 24, 2026.

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Analysis

British American Tobacco p.l.c. (BATS) currently trades at £45.85, while our model-based Fair Value estimate is £41.73 — implying the stock looks roughly 9.0% overvalued today. We read business quality at 95/100 (high quality), in the Consumer Defensive sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium — the entry price still matters most (evidence: high).

Over the trailing twelve months, British American Tobacco p.l.c. generated revenue of £25.6B at a net margin of 30.3%. Revenue grew 0.1% year over year. It earns a return on equity of 15.8%. Net debt stands at £31.9B. Fundamentals as of Jun 24, 2026

Key figures & financial health

Revenue (TTM) 25.6B GBX
Revenue growth (YoY) +0.1%
Net margin 30.3%
Return on equity 15.8%
Free cash flow 4.4B GBX FY2025
P/E ratio 12.7
More key figures
Operating margin 34.6%
EPS (TTM) £3.49
Dividend yield 5.4%
EPS growth (YoY) +1.6%
Net debt 31.9B GBX FY2025

Figures from reported company fundamentals (EODHD) · as of Jun 24, 2026. TTM = trailing twelve months.

About the company

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. The company 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. It sells its products under the Vuse, glo, Velo, Grizzly, Kodiak, Dunhill, Kent, Lucky Strike, Pall Mall, Rothmans, Newport, Natural American Spirit, and Camel Snus brands, as well as Vogue, Viceroy, Kool, Peter Stuyvesant, Craven A, and State Express 555 brands. The company distributes its products to retail outlets. British American Tobacco p.l.c. was founded in 1902 and is headquartered in London, the Unite…

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

British American Tobacco p.l.c. reported revenue of £25.6B in FY2025 versus £25.7B in FY2021, a compound −0.1%/yr. Reported net income was £7.8B in FY2025, compounding +3.4%/yr from FY2021.

Revenue −0.1%/yr
FY21 £25.7B
FY22 £27.7B
FY23 £27.3B
FY24 £25.9B
FY25 £25.6B
Net income +3.4%/yr
FY21 £6.8B
FY22 £6.7B
FY23 −£14.4B
FY24 £3.1B
FY25 £7.8B

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Similar stocks

6 more Tobacco stocks, each showing price versus our Fair Value estimate (as of Jun 24, 2026).

Stock Price Fair Value vs Fair Value
Philip Morris International Inc PM $178.29 $105.35 -41%
Altria Group MO 1,253 MXN 1,259 MXN +0%
Japan Tobacco Inc JAPAF $37.74 $28.77 -24%
ITC Limited ITC ₹283.65 ₹243.28 -14%
Imperial Brands PLC IMBBY $36.49 $56.53 +55%
KT&G Corporation 033780 174,900 KRW 106,289 KRW -39%

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Frequently asked questions

Is British American Tobacco p.l.c. (BATS) undervalued?
As of Jun 24, 2026, our model estimates a fair value of £41.73 versus a price of £45.85 — about −9% (overvalued). Model-based estimate, not financial advice.
What is the fair value of BATS?
Our 21-model fair value for British American Tobacco p.l.c. is £41.73 (as of Jun 24, 2026), built from audited fundamentals. The current price is £45.85.
What is the quality score of BATS?
British American Tobacco p.l.c. has a Quality Score of 95/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of British American Tobacco p.l.c. (BATS)?
British American Tobacco p.l.c. reported trailing-twelve-month revenue of about £25.6B (latest available figure, as of Jun 24, 2026).
What is the net profit margin of BATS?
The net profit margin of British American Tobacco p.l.c. is about 30.3%, meaning it keeps roughly 30.3% of revenue as net income. Based on the latest reported figures.
Does British American Tobacco p.l.c. pay a dividend?
British American Tobacco p.l.c. currently shows a dividend yield of about 5.35% relative to its recent price (as of Jun 24, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.