Share count
2.2Bpeak FY2021
← All companies ← BTG Manual BUD → ← 2914 Tobacco MO →
BTI, British American Tobacco p.l.c.
Tobacco and nicotine market was worth around US$939 billion in 2024.
The global nicotine market is evolving at a rapid pace, characterised by the growing presence of oral nicotine and heated products across multiple jurisdictions, and the continued uptake of vapour products by smokers.
Combustible cigarettes remain, by a considerable margin, the largest product category within this market.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
£25.6B
−1.0% YoY · −0% 5-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue £25.6B 5-yr avg £26.4B
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What it is
- Revenue is led by Combustibles (79%) and New Categories (14%), with 2 more lines behind.
- Situation
- Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
- What moves the needle
- Operating margin has run about 35% through the cycle, a wide margin for the work it does — whether that reflects a durable edge or one that can fade is what the record weighs. The operating margin has swung widely — from −58% to 40% over the years — so the through-cycle figure carries more than any single year, and the worst year more than the best. Inventory runs near 21% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. On its own account, the filing leans hardest on debt terms & refinancing, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Return on capital has rarely cleared the cost of capital (median 6%, above 15% in 0 of 10 years). By owner earnings: roughly 36% of revenue reaches owners as cash, consistently. The cycle and the balance sheet decide this one; the worst year tells more than the median, and the rest is in the 10-K.
Every line is arithmetic on the company's filings, shown in full in the sections below.
Where the money comes from
read the 20-F →Combustibles is 79% of revenue, with New Categories the other meaningful line at 14%.
Revenue by product line, FY2025
- Combustibles79%£20.2B
- New Categories14%£3.6B
- Traditional Oral4%£1.0B
- Other3%£745M
By geographyForeign countries99%United Kingdom1%
From the segment footnote of the company's own 20-F. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.
The record
Ten years of arithmetic, read across the cycle.
The record, 2016–2025
realized figures from each filing · older years to the left| 2016’16 | 2017’17 | 2018’18 | 2019’19 | 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMDec 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | |||||||||||
| £14.1B | £19.6B | £24.5B | £25.9B | £25.8B | £25.7B | £27.7B | £27.3B | £25.9B | £25.6B | £25.6B | RevenueRevenue |
| £4.7B | £6.4B | £9.3B | £9.0B | £10.0B | £10.2B | £10.5B | (£15.8B) | £2.7B | £10.0B | £10.0B | Operating incomeOp. inc. |
| 32.9% | 32.8% | 38.0% | 34.8% | 38.6% | 39.8% | 38.1% | −57.7% | 10.6% | 39.0% | 39.0% | Operating marginOp. mgn |
| £4.6B | £37.5B | £6.0B | £5.7B | £6.4B | £6.8B | £6.7B | (£14.4B) | £3.1B | £7.8B | £7.8B | Net incomeNet inc. |
| 23% | — | 26% | 27% | 25% | 24% | 27% | — | 10% | 21% | 21% | Effective tax rateTax rate |
| Cash flow & returns | |||||||||||
| £4.6B | £5.3B | £10.3B | £9.0B | £9.8B | £9.7B | £10.4B | £10.7B | £10.1B | £6.3B | £6.3B | Operating cash flowOp. cash |
| £607M | £902M | £1.0B | £1.5B | £1.4B | £1.1B | £1.3B | £28.6B | £3.1B | £2.5B | £2.5B | DepreciationDeprec. |
| (£645M) | (£33.0B) | £3.2B | £1.8B | £1.9B | £1.8B | £2.4B | (£3.5B) | £4.0B | (£4.0B) | (£4.0B) | Working capital & otherWC & other |
| £586M | £791M | £758M | £664M | £511M | £527M | £523M | £460M | £486M | £551M | £551M | CapexCapex |
| 4.1% | 4.0% | 3.1% | 2.6% | 2.0% | 2.1% | 1.9% | 1.7% | 1.9% | 2.2% | 2.2% | Capex / revenueCapex/rev |
| £4.0B | £4.6B | £9.5B | £8.3B | £9.3B | £9.2B | £9.9B | £10.3B | £9.6B | £5.8B | £5.8B | Owner earningsOwner earn. |
| 28.5% | 23.3% | 38.9% | 32.2% | 36.0% | 35.8% | 35.7% | 37.6% | 37.3% | 22.6% | 22.6% | Owner earnings marginOE mgn |
| £4.0B | £4.6B | £9.5B | £8.3B | £9.3B | £9.2B | £9.9B | £10.3B | £9.6B | £5.8B | £5.8B | Free cash flowFCF |
| 28.5% | 23.3% | 38.9% | 32.2% | 36.0% | 35.8% | 35.7% | 37.6% | 37.3% | 22.6% | 22.6% | Free cash flow marginFCF mgn |
| £2.9B | £3.5B | £4.3B | £4.6B | £4.9B | £5.0B | £4.9B | £5.1B | £5.2B | £5.2B | £5.0B | Dividends paidDiv. paid |
| — | — | £139M | £117M | £0 | £0 | £2.0B | £0 | £698M | £1.1B | — | BuybacksBuybacks |
| 14% | 6% | 6% | 6% | 7% | 8% | 7% | -14% | 3% | 10% | 10% | ROICROIC |
| 57% | 62% | 9% | 9% | 10% | 10% | 9% | -28% | 6% | 17% | 17% | Return on equityROE |
| 21% | 56% | 3% | 2% | 2% | 3% | 2% | −38% | −4% | 5% | 6% | Retained to equityRetained/eq |
| Balance sheet | |||||||||||
| £2.2B | £3.3B | £2.8B | £2.7B | £3.1B | £2.8B | £3.4B | £4.7B | £5.3B | £3.8B | £4.0B | Cash & investmentsCash+inv |
| £3.9B | £4.1B | £3.6B | £4.1B | £3.7B | £4.0B | £4.4B | £3.6B | £3.6B | £3.8B | £3.8B | ReceivablesReceiv. |
| £5.8B | £5.9B | £6.0B | £6.1B | £6.0B | £5.3B | £5.7B | £4.9B | £4.6B | £4.4B | £4.4B | InventoryInvent. |
| £7.3B | £8.8B | £10.6B | £9.7B | £9.7B | £9.6B | £10.4B | £9.7B | £9.6B | £9.3B | £9.3B | Accounts payablePayables |
| £2.3B | £1.1B | (£1.0B) | £460M | £26M | (£347M) | (£411M) | (£1.1B) | (£1.3B) | (£1.1B) | (£1.1B) | Operating working capitalOper. WC |
| £12.4B | £14.0B | £12.7B | £13.3B | £13.6B | £12.8B | £15.4B | £14.2B | £14.3B | £12.7B | £12.7B | Current assetsCur. assets |
| £11.9B | £15.5B | £16.3B | £18.8B | £15.5B | £15.1B | £17.9B | £15.7B | £18.7B | £14.5B | £14.5B | Current liabilitiesCur. liab. |
| 1.0× | 0.9× | 0.8× | 0.7× | 0.9× | 0.8× | 0.9× | 0.9× | 0.8× | 0.9× | 0.9× | Current ratioCurr. ratio |
| £11.0B | £44.1B | £46.2B | £44.3B | £43.3B | £43.2B | £48.0B | £41.1B | £41.1B | £38.9B | £38.9B | GoodwillGoodwill |
| £39.8B | £141.0B | £146.3B | £141.0B | £137.7B | £137.4B | £153.5B | £118.7B | £118.9B | £109.3B | £109.3B | Total assetsAssets |
| £19.5B | £49.5B | £47.5B | £45.4B | £44.0B | £39.7B | £43.1B | £39.7B | £37.0B | £35.1B | £35.1B | Total debtDebt |
| £17.3B | £46.2B | £44.7B | £42.7B | £40.8B | £36.8B | £39.7B | £35.1B | £31.7B | £31.2B | £31.1B | Net debt / (cash)Net debt |
| 6.8× | 5.4× | 6.4× | 5.3× | 5.5× | 6.7× | 6.1× | -7.6× | 2.0× | 4.9× | 4.9× | Interest coverageInt. cov. |
| £8.2B | £60.8B | £65.4B | £63.9B | £62.7B | £65.4B | £73.7B | £50.9B | £48.0B | £46.0B | £46.0B | Shareholders’ equityEquity |
| Per share | |||||||||||
| — | — | 2.29B | 2.28B | 2.29B | 2.29B | 2.26B | 2.23B | 2.21B | 2.19B | 2.19B | Shares out (diluted)Shares |
| — | — | £10.72 | £11.33 | £11.28 | £11.23 | £12.26 | £12.24 | £11.68 | £11.71 | £11.71 | Revenue / shareRev/sh |
| — | — | £2.64 | £2.50 | £2.80 | £2.97 | £2.95 | £-6.45 | £1.39 | £3.55 | £3.55 | EPS (diluted)EPS |
| — | — | £4.17 | £3.65 | £4.06 | £4.02 | £4.38 | £4.60 | £4.35 | £2.65 | £2.65 | Owner earnings / shareOE/sh |
| — | — | £4.17 | £3.65 | £4.06 | £4.02 | £4.38 | £4.60 | £4.35 | £2.65 | £2.65 | Free cash flow / shareFCF/sh |
| — | — | £1.90 | £2.01 | £2.16 | £2.19 | £2.18 | £2.27 | £2.35 | £2.40 | £2.29 | Dividends / shareDiv/sh |
| — | — | £0.33 | £0.29 | £0.22 | £0.23 | £0.23 | £0.21 | £0.22 | £0.25 | £0.25 | Cap. spending / shareCapex/sh |
| — | — | £28.64 | £27.98 | £27.42 | £28.60 | £32.66 | £22.83 | £21.66 | £21.05 | £21.05 | Book value / shareBVPS |
Per-share growththe realized rate an owner's share compounded
| 9-yr | 5-yr | |
|---|---|---|
| Revenue / share | +1.3%/yr (7-yr) | +0.8%/yr |
| Owner earnings / share | −6.3%/yr (7-yr) | −8.2%/yr |
| EPS | +4.3%/yr (7-yr) | +4.9%/yr |
| Dividends / share | +3.3%/yr (7-yr) | +2.1%/yr |
| Capital spending / share | −3.9%/yr (7-yr) | +2.4%/yr |
| Book value / share | −4.3%/yr (7-yr) | −5.1%/yr |
The record, charted
FY2016–2025Each measure over its full record; the current point and the worst year marked.
ROIC
10%low FY2023
Net debt ÷ owner earnings
5.4×peak FY2017
Owner earnings vs. net income
Owner earningsNet incomeThe accountant's number, and the cash an owner can take; the gap is the tell.
£5.8Bowner earningsvs.£7.8Bnet incomelow FY2016
Where the cash went
ReinvestBuybacksDividendsAcquisitionsRetainedEach year's operating cash, by what management did with it: the mix, and how it drifts.
FY2016FY2025
Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.
In fiscal 2025 the business reported £7.8B of profit but £5.8B of owner earnings: £2.0B less than the profit line, taken out by capital spending and the timing of cash.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Reported net income | £7.8B | £3.1B | (£14.4B) | £6.7B | £6.8B |
| Depreciation & amortizationnon-cash charge added back | +£2.5B | +£3.1B | +£28.6B | +£1.3B | +£1.1B |
| Working capital & othertiming of cash in and out, other non-cash items | −£4.0B | +£4.0B | −£3.5B | +£2.4B | +£1.8B |
| Cash from operations | £6.3B | £10.1B | £10.7B | £10.4B | £9.7B |
| Capital expenditurecash put back in to keep running and to grow | −£551M | −£486M | −£460M | −£523M | −£527M |
| Owner earnings | £5.8B | £9.6B | £10.3B | £9.9B | £9.2B |
| Owner-earnings marginowner earnings ÷ revenue | 23% | 37% | 38% | 36% | 36% |
Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position .
Much of fiscal 2025's profit didn't arrive as operating cash; it sits in “working capital & other” above. That can be a real inventory or timing swing, or profit that doesn't run through operating cash at all: a heavy tax year, equity-method earnings, or investment income booked through investing. For a year like this, owner earnings understates the cash earned; the full cash-flow statement carries the rest.
Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 20-F · source on SEC EDGAR →
Will it survive?
- AdequateOperating income £10.0B ÷ interest expense £2.0B
What this means
Comfortable in a normal year, but below the margin of safety Graham looked for. Worth checking how stable the coverage has been across a full cycle.
- How heavy is the debt, net of cash? £31.1B · 3.1× operating profitMeaningful net debtCash £3.8B + ST investments £167M − debt £35.1B
What this means
Netting £4.0B of cash and short-term investments against £35.1B of debt leaves £31.1B owed, about 3.1× a year's operating profit (3.5× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
- Not enough data
What this means
The filing data didn't include the inputs for this check.
Is it a good business?
- Below average through the cycle10-yr median, range -14%–14%; 10% latest = NOPAT £7.9B ÷ invested capital £77.3BIndustry peers: median 38%
What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 10% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
- High through the cycle10-yr median margin, range 23%–39%; latest £5.8B = operating cash £6.3B − maintenance capex £551MIndustry peers: median 29%
What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 23% of revenue this year, a 36% median across 10 years.
- Mostly cash-backedCash from ops £6.3B ÷ net income £7.8B
What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.
How is the cash used?
- Returned more than it generatedDividends + buybacks £6.1B ÷ Owner Earnings £5.8B
What this means
The company returned more than it generated: against £5.8B of Owner Earnings, £6.1B (106%) went back to shareholders, £5.0B dividends, £1.1B buybacks — the excess came from the balance sheet or borrowing, not the year's operations. Sustained, that pattern draws down cash or adds debt; the net-debt line above shows where it stands.
- Investing or harvesting? 0.22×HarvestingCapex £551M ÷ depreciation £2.5B
What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
Graham’s defensive tests · 1 of 5 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size —Revenue ≥ $2B (a dollar floor) · £25.6B
What this means
Big enough to weather a storm. Graham's floor is a dollar figure — about $2B of revenue as a conservative modern stand-in. This company reports in its home currency and we carry no exchange rate, so we show the figure and leave the size bar for you to apply rather than convert it with a number we don't have.
- Strong liquidity MissCurrent ratio ≥ 2× · 0.87×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Conservative debt MissDebt ≤ working capital · £35.1B vs (£1.8B) WC
What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
- Earnings stability NearA profit every year (10-yr record) · 1 loss year
What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
- Dividend record PassUninterrupted dividends · paid every year (10)
What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
- Earnings growth MissEarnings +33% over the record · −107%
What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are £-0.51/share (latest year £3.36), the averaged base the calculator's gate runs on, and book value is £19.91/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Durability & moat, 2016–2025
Whether the record’s returns held, and what the capital reinvested earned.
- Profitable years 9 of 10
What this means
Lost money in 1 year(s), look at what happened there before trusting the average.
- Return on capital ≥ 15% 0 of 10 yrs
What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
- Operating margin 35% → −3% (3-yr avg ends)
In the filing’s words The filing attributes gains to higher prices, but the margin in the record has not followed — the claim outruns the result here.
What this means
The recent-years average (−3%) sits below the early years (35%), but the latest year (39%) is back near the early level: a cyclical trough dragging the window down, not a one-way slide. The through-cycle median is 35% — read it across the cycle, not on the dip.
- Reinvestment, incremental ROIC returns capital
What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
- Owner earnings growth +7%/yr
What this means
Owner earnings grew about 7% a year over the record.
- Worst year 2023 · −57.7% op. margin
What this means
Operations went underwater in 2023, understand why before trusting the good years.
- Share count −0.5%/yr
What this means
Roughly flat share count, little dilution, little buyback.
- Dividend record rising
What this means
Paid and raised the dividend across the record, the continuity Graham prized.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
In its own filing Raised, but not as a competitor
The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product; it frames AI mainly as a capability.
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of fiscal year-end, Dec 31, 2025Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assets£12.7B
- Cash & short-term investments£4.0B
- Receivables£3.8B
- Inventory£4.4B
- Other current assets£506M
Current liabilities£14.5B
- Debt due within a year£3.4B
- Accounts payable£9.3B
- Other current liabilities£1.8B
Current ratio0.87×all current assets ÷ what's due · Graham looked for 2×
Quick ratio0.57×stricter: inventory excluded
Cash ratio0.27×strictest: cash alone against what's due
Working capital(£1.8B)the cushion left after near-term bills
Debt due this year vs. cash£3.4B due · £4.0B cash
covered by cash on hand, no refinancing forced · both figures from the Dec 31, 2025 balance sheet
Deeper floors
Tangible book value£7.1Bequity stripped of goodwill & intangibles
Debt incl. operating leases£35.6B£529M of it operating leases
From the company's latest filing.
How the cash was used, 2016–2025
Over the record, the business generated £86.3B of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.
- Reinvested£5.9B · 7%
- Dividends£45.7B · 53%
- Buybacks£4.1B · 5%
- Retained (debt / cash)£30.7B · 36%
- Returned to owners£49.8B
62% of the owner earnings the business produced over the span, £45.7B as dividends and £4.1B as buybacks.
- Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span debt rose £15.6B and cash and short-term investments rose £1.8B.
- Average price paid for buybacks—
Buybacks ran £4.1B over the span, but the filings don't tag the share count needed to deduce the average price paid.
- Net change in share count−4.3%
The diluted count fell from 2285M to 2187M, so the buybacks outran the stock issued to staff.
- Dividend record£2.40/sh
Paid in 10 of the years on record, the per-share dividend growing about 3% a year. It was never cut over the span.
- Return on what it retained12%
Of the earnings it kept rather than paid out (£20.4B over the span), annual owner earnings (first three years vs last three) grew £2.5B, so each retained £1 added about 0.12 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.
Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.
Acquisitions & goodwill
from the balance sheet & the 10-year cash-flow recordGoodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.
Goodwill£38.9B36% of all assets; the premium carried on the balance sheet for businesses acquired
Against book equity85%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital
Cash spent acquiring£0over 10 years buying other businesses, against £5.9B of capital spent building
None written down over the record; the goodwill is still carried at full cost. That is the deals holding their value on the books so far; whether they keep doing so is the test an owner watches, since the write-down, when it comes, is the admission the price was too high.
Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 10-year record, from the company's own filings.
Inverting the record
Invert: instead of why British American Tobacco p.l.c. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.
1 of the 5 tests turned up something to look into; the other 4 came back clean.
- Look hereDid debt outgrow the business?£19.5B → £35.1B
Debt rose from £19.5B to £35.1B while owner earnings went from about £6.0B to £8.6B — about 3.2 years of owner earnings in debt then, about 4.1 now: measured against what the business earns, the balance sheet carries more debt than it did. Debt raised for buybacks or deals rather than growth is the kind that bites in a downturn.
And these came back clean
- Is it less profitable than it was?
- Did the share count rise anyway?
- Did reported profit become cash?
- Did receivables and inventory outpace sales?
Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.
Peers, Tobacco
The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Gross margin | Op. margin | ROIC | Owner earn. margin |
|---|---|---|---|---|---|
| PMPhilip Morris International Inc | $40.6B | 65% | 38.5% | 58% | 29% |
| BTIBritish American Tobacco p.l.c. | £25.6B | — | 36.4% | 6% | 36% |
| MOAltria Group Inc. | $23.3B | 72% | 42.0% | 38% | 32% |
| TPBTurning Point Brands Inc. | $463M | 49% | 20.4% | 15% | 9% |
| Group median | — | — | 37.5% | 26% | 30% |
The price
What a price has to assume.
What the price implies
reverse-DCFEnter the US price, in dollars: the NYSE/Nasdaq quote you hold. Per the filing's own cover, “Each ADS represents one ordinary”; British American Tobacco p.l.c. reports in GBP, so every figure in this tool is stated per ADS and translated at GBP 1 = $1.349 (2026-07-17, reference rate) so your dollar quote reconciles exactly. The record tables elsewhere on this page remain as filed, in GBP.
Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what British American Tobacco p.l.c. has delivered.
$
Through the cycle, British American Tobacco p.l.c. earns about $12.3B on its 35.7% median owner-earnings margin. This year’s 22.6% margin runs below that; the reported figure may understate a lean year. Normalize, below, values the price on that through-cycle figure rather than the latest year.
Base
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The assumptions
9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.
Enter a price above to run it.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Implied by the price—
Owner-earnings growth · ’21→’25−5%/yr
Owner-earnings growth · ’16→’25+7%/yr
Owner-earnings growth · ’16→’25+7%/yr
Owner-earnings yield—
What a growth belief costs, in multiples
The growth each return requires, at your price
P/E (3-yr earnings ’23–’25)—
P/B—
Graham’s price gate—
Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.
Against a high-grade bond: Graham’s yardstick bond yield%
Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.
Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.
Owner-earnings yield—
High-grade bond yield—
Margin over the bond—
Owner earnings $7.8B on 2312M shares outstanding, per the 20-F cover, as of 2025-12-31; net debt $41.9B. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.
Cite: Owner Scorecard, "British American Tobacco p.l.c. (BTI), the owner's record," https://ownerscorecard.com/c/BTI, data as of 2026-07-09.
Manual order: ← BTG its page in the Manual BUD →
Industry order: ← 2914 the Tobacco chapter MO →