British American Tobacco p.l.c. (BTI) — Fundamental Analysis & Key Financial Ratios

Kaplio overview: British American Tobacco p.l.c.

Market cap $133B · 52 weeks $51 – $67 (6 % below the high) · P/E 15.7× · 2027 expected P/E 11.8× · Dividend 5.3 % · Next earnings February 11, 2027 · expected EPS $2.61 · Closing price, Oct 30 · accounts published Jul 30.

• Valuation: P/E 15.7× (expensive).
• Business: ROIC 8 % (weak).
• Balance sheet: Net debt/EBITDA 2.7× (watch).
• Earnings: 6 of 8 (on track).

What would it be worth at its usual multiples?

At the decade median (4.3×) $17 (-73 %); at its sector median (22.4×) $88 (+43 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.

What matters in consumer staples: 4 of 8 pass

• Stable ROE / ROIC 13.4 %, fails.
• FCF / Net Income 74.6 %, fails.
• P/E vs own 10y history 15.7×, fails.
• Net debt / EBITDA 2.7×, borderline.
• Gross margin (stable 5y) 83.5 %, passes.
• 10y dividend growth 6.7 %, passes.
• 10y EPS growth 6.4 %, passes, near the threshold.
• Payout Ratio 66.0 %, passes.

Against its peers (reference peers) — British American Tobacco p.l.c.: P/E 15.7×; EV/EBITDA 10.6×; ROIC 7.6 %; $133B. Altria Group, Inc. (P/E 16.1×; EV/EBITDA 12.6×; ROIC 34.5 %; $130B), Philip Morris International Inc. (P/E 30.5×; EV/EBITDA 19.6×; ROIC 27.5 %; $325B).

Expensive or cheap against its last ten years?

P/E at each close: today 15.7× · median 4.3× · minimum 1.3× · maximum 15.7× · cheap below 3.6× · expensive above 5.6×. It has been cheaper than today 100% of the time over its last ten years.

Dividend

tight (only raised recently) · Yield 5.3 % ($3.14 per ADS in 2025) · 5-year growth +2 % a year · Free cash flow coverage 1.6× · With $1,000 invested today you'd collect $53.20 a year ($4.43 a month).