British American Tobacco p.l.c.

British American Tobacco p.l.c. (BTI) Stock Analysis

$60.000

+2.070 (+3.45%)At close

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High
60.020
Open
59.030
VWAP
59.66
Volume
13.32M
Mkt Cap
70.12B
Low
58.970
Amount
794.75M
EV/EBITDA, TTM
11.60

British American Tobacco p.l.c. is a global multi-category consumer goods business company. The Company provides tobacco and nicotine products. Its segments include the United States, Asia Pacific Middle East and Africa, and Americas and Europe. Its product categories include Vapor, Heating Products (HPs), Modern Oral, Traditional Oral, and Combustibles. Vapor products are handheld, battery-powered devices that heat a liquid to produce an inhalable aerosol, known as vapor. HPs are devices that use heat to generate a nicotine-containing aerosol, which the user inhales. This category includes Tobacco Heated Products and Herbal Products for Heating (HPH). Modern Oral products are smoke-free oral nicotine products called nicotine pouches, designed for use in the mouth. Traditional oral products include snus and snuff. Its brands include Vuse, glo, Velo, Grizzly, Kent, Dunhill, Lucky Strike, Pall Mall, Rothmans, Newport, Natural American Spirit, Camel, and others.

www.bat.com

AI analysis of British American Tobacco p.l.c. (BTI)

Buy

British American Tobacco (BTI) is a good buy right now due to its attractive forward P/E ratio of 10.74, which indicates potential undervaluation compared to its earnings growth prospects. Additionally, the stock has a strong dividend yield of 6.3%, which is appealing for long-term investors seeking income. The current price of 55.5 is below the analyst price target of £58, suggesting room for price appreciation. However, a risk to consider is the 180.87% increase in hedge fund selling over the last quarter, indicating potential bearish sentiment among institutional investors.

Analyst Ratings (2)

Buy
2 Buy
0 Hold
0 Sell
Current: 60.00
Low
—
Average
—
High
—

Morgan Stanley

2026-09-07

Price Target

—

Overweight

UBS

2026-09-02

Price Target

—

Buy

RBC Capital

2026-08-11

Price Target

—

Underperform

BTIG

2026-07-21

Price Target

—

Buy

Citi

2026-05-14

Price Target

—

Buy

Valuation Metrics

The current forward P/E ratio for British American Tobacco p.l.c. (BTI) is 10.74, compared to its 5-year average forward P/E of 8.04.

Forward P/E

Fair
5Y Average P/E
8.04
Current P/E
10.74
Overvalued
10.95
Undervalued
5.13

Forward EV/EBITDA

Overvalued
5Y Average EV/EBITDA
8.73
Current EV/EBITDA
11.60
Overvalued
10.66
Undervalued
6.80

Forward P/S

Overvalued
5Y Average P/S
2.85
Current P/S
4.60
Overvalued
3.75
Undervalued
1.95

Alphio AI Price Scenarios for BTI

Scenario prices are the last monthly forecast band of the current year. Probabilities are fixed model weights (25 / 50 / 25), not guarantees.

B

Bull

Bull · 25%BTI

$58.65

Scenario price

B

Base

Base · 50%BTI

$52.31

Scenario price

B

Bear

Bear · 25%BTI

$44.25

Scenario price

Whales holding BTI

S

Sanlam Investment Management (Pty) Ltd.

+ HoldingBTI

+16.52%

3M Return

O

Old Mutual Investment Group South Africa (Pty) Limited

+ HoldingBTI

+13.18%

3M Return

R

RBC Europe Limited

+ HoldingBTI

+11.89%

3M Return

G

GQG Partners, LLC

+ HoldingBTI

+9.34%

3M Return

R

Resona Bank, Limited

+ HoldingBTIAZN

+8.64%

3M Return

B

Bank J. Safra Sarasin AG

+ HoldingBTI

+6.56%

3M Return

BTI FAQ — answered by Alphio AI

British American Tobacco p.l.c. is a global multi-category consumer goods business company. The Company provides tobacco and nicotine products. Its segments include the United States, Asia Pacific Middle East and Africa, and Americas and Europe. Its product categories include Vapor, Heating Products (HPs), Modern Oral, Traditional Oral, and Combustibles. Vapor products are handheld, battery-powered devices that heat a liquid to produce an inhalable aerosol, known as vapor. HPs are devices that use heat to generate a nicotine-containing aerosol, which the user inhales. This category includes Tobacco Heated Products and Herbal Products for Heating (HPH). Modern Oral products are smoke-free oral nicotine products called nicotine pouches, designed for use in the mouth. Traditional oral products include snus and snuff. Its brands include Vuse, glo, Velo, Grizzly, Kent, Dunhill, Lucky Strike, Pall Mall, Rothmans, Newport, Natural American Spirit, Camel, and others. It operates in the Consumer Non-Cyclicals sector (CIGARETTES industry).

British American Tobacco (BTI) is a good buy right now due to its attractive forward P/E ratio of 10.74, which indicates potential undervaluation compared to its earnings growth prospects. Additionally, the stock has a strong dividend yield of 6.3%, which is appealing for long-term investors seeking income. The current price of 55.5 is below the analyst price target of £58, suggesting room for price appreciation. However, a risk to consider is the 180.87% increase in hedge fund selling over the last quarter, indicating potential bearish sentiment among institutional investors.

2 analysts cover BTI: 2 rate it Buy, 0 Hold and 0 Sell.

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This page is for research only and is not investment advice. Models can be wrong. Past performance does not guarantee future results.

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