British American Tobacco

BTI is overvalued

NYSE · Consumer Defensive

FAIR PRICE

14.1%downside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

$57.48

MARKET PRICE

$49.39

FAIR PRICE

$8.09

MARGIN

UNDERFAIROVER

COMMUNITY BUY ZONE

UNLOCKS AT 10

Where does the market buy BTI?

1 investor has set their maximum buying price for BTI. The community zone unlocks at 10.

COMMUNITY MEDIAN

▓▓▓▓▓

BUYERS AT TODAY'S PRICE

▓▓ %

1/10 INVESTORS · 9 MORE TO UNLOCK

METRICS

P/E11.5
P/B1.9
P/S3.5
PEG0.08
DIV YIELD8.79%
ROE15.6%
ROIC8.0%
DEBT/EQ0.73
MKT CAP$89B

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FPI RATING

6.5/ 10

Strong profitability and attractive valuation, but limited growth momentum.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$39.51CONSERVATIVE ENTRY
$49.39FAIR PRICE
$57.48MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$39.51

Fair price × 0.80

DISTANCE

31.3%

Price to entry level

At the current price of $57.48, BTI trades 31.3% above the conservative entry level of $39.51. This entry level represents a 20% margin of safety below the calculated fair price of $49.39 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

SYNCING FEED

P/E RATIO HISTORY

SYNCING FEED

METHODOLOGY

How we calculate BTI's fair price

British American Tobacco's fair price of $49.39 is derived from a blended model that combines DCF analysis (50%), relative valuation against Consumer Defensive peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $57.48, BTI trades 14.1% above its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting BTI's risk profile.

RELATIVE · 30%

Comparing BTI's valuation multiples against Consumer Defensive peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for BTI, weighted by recency and analyst accuracy.

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Want to test your own assumptions? Use our free calculators to estimate BTI's fair value with your own inputs.

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FAQ

What is the fair price of BTI?+

Based on our blended model combining DCF analysis (50%), relative valuation against Consumer Defensive peers (30%), and analyst consensus (20%), the fair price for British American Tobacco is $49.39. At the current market price of $57.48, BTI trades 14.1% above its calculated fair value.

Is BTI overvalued or undervalued?+

British American Tobacco is currently overvalued based on our valuation model. The stock trades at $57.48, which is 14.1% above the fair price of $49.39. The P/E ratio of 11.5x is a key metric in the valuation.

What is the margin of safety for BTI?+

With a 20% margin of safety applied to the fair price of $49.39, the conservative entry level for BTI is $39.51. At the current market price of $57.48, the stock trades 31.3% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is BTI's fair price updated?+

We update fair price calculations for BTI daily after market close. The current fair price of $49.39 incorporates the latest market data and sector multiples.

What factors affect BTI's fair price calculation?+

BTI's fair price of $49.39 is derived from DCF analysis (50% weight), relative valuation against Consumer Defensive peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 11.5x, ROE of 15.6%, and dividend yield of 8.79%.

Is BTI a good buy right now?+

At $57.48, BTI trades 14.1% above our fair value estimate of $49.39. The stock is currently overvalued. ROE stands at 15.6% (strong). Fair Price Index provides valuation data — always do your own research before investing.

Does BTI pay dividends?+

BTI has a dividend yield of 8.79%.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.