Tobacco · NYSE
Current Price
$57.45
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on British American Tobacco p.l.c. with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
British American Tobacco p.l.c. provides tobacco and nicotine products to consumers in the Americas, Europe, the Asia-Pacific, the Middle East, Africa, and the United States. It offers vapour, heated, and modern oral nicotine products; combustible cigarettes; and traditional oral products, such as snus and moist snuff. The company provides its products under the Vuse, glo, Velo, Grizzly, Kodiak, Dunhill, Kent, Lucky Strike, Pall Mall, Rothmans, Newport, Natural American Spirit, and Camel brands. The company distributes its products to retail outlets. British American Tobacco p.l.c. was founded in 1902 and is based in London, the United Kingdom.
Earnings Yield
8.39%
ROE (TTM)
16.3%
Based on trailing twelve-month data, BTI has earnings per share of N/A and trades at a PE ratio of N/A. These are key inputs for stock valuation using the PE ratio method.
The trailing twelve-month PE ratio of BTI reflects how much investors pay per dollar of British American Tobacco p.l.c.'s earnings. This metric is most useful when compared to Tobacco peers and the company's own historical range.
Whether BTI is overvalued depends on comparing its PE ratio to Tobacco peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
To value British American Tobacco p.l.c. using PE: (1) Compare the current PE against the Tobacco median to assess relative pricing, (2) check the PEG ratio to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
PE ratio gives a quick relative read — how BTI is priced versus Tobacco peers. DCF provides an absolute value based on projected free cash flows. For BTI, with a strong ROE of 16.3%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
