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Financial distress

British American Tobacco

LSE:BATS · GB0002875804
TobaccoXX-Large

360

81
EV / EBIT83
Price / Owner Earnings85
Owner Earnings Yield96
Dividend Yield87
Price/Sales47
EV / Gross Profit60
Price/Book41
Return on Capital47
Cash Return on Capital70
Return on Equity56
EBIT Margin96
Gross Profitability32
Cash Conversion8
Accruals34
Owner Earnings Margin98
Sales growth45
Profit Growth100
Long-Term EPS Growth45
Owner Earnings Growth95
Reinvestment56
Price momentum62
Debt load52
Refinancing41
Debt Payback62
Liquidity73
Analyst ratings38
Opinion Changes11
Price Target Upside45
Market mood33
Value Creation16/20strong value creator
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

British American Tobacco generates returns well above its cost of capital, the foundation of durable shareholder value.

Profile

CountryUK
IndustryTobacco
SizeXX-Large
TypePublic Company
ExchangeLSE
Founded1997
Employees31,232
Websitebat.com
ISINGB0002875804
Last UpdateApr 2, 2026
Indices
FTSE 100 (United Kingdom)FTSE 350 (United Kingdom)FTSE All Shares (United Kingdom)JSE All Shares (South Africa)
Themes
CannabisFast-Moving Consumer GoodsAgricultureConsumer GoodsTobacco

Description

British American Tobacco p.l.c., the parent holding company, operates as a multi-category consumer goods business that provides tobacco and nicotine products to millions of adult consumers around the world. The company, excluding the company’s assoc…

Analysis

Bargain bin

British American Tobacco p.l.c. is priced cheaply, and that invites the natural question of why, since the underlying business scores below average.

On valuation, the picture is attractive. The owner-earnings multiple stands at 10.5×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around -2% a year, against analyst forecasts of 7%. The price, in other words, assumes less than the experts do.

Growth is moderate; the safety picture is adequate. The company scores 16/20 on our value-creation score: strong value creator.

Flags to be aware of: Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
88
2023202420252026

All-time high

88

Jun 2026

All-time low

14

Jan 2024

Average rank

59

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
47
9
18
20
Price/Earnings
29
82
95
91
Price/Book
41
64
80
82
Dividend Yield
87
92
100
100
Value (overall)
60
49
69
82

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →