Latest Ratios: P/E Ratio 12.1x · EV/EBITDA 10.2x · ROE 15.8%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $120.8B | $124.5B | $80.8B | $65.3B | $90.5B | $84.7B | $84.9B | $96.2B | $72.2B | $151.7B | $127.6B |
| Enterprise Value | $162.2B | $155.8B | $112.5B | $102.7B | $130.2B | $121.6B | $125.7B | $139.0B | $117.1B | $197.9B | $144.9B |
| P/E Ratio → | 12.09 | 16.22 | 26.71 | — | 13.69 | 12.64 | 13.44 | 17.05 | 11.98 | 3.66 | 22.63 |
| P/S Ratio | 3.56 | 4.86 | 3.12 | 2.39 | 3.27 | 3.30 | 3.29 | 3.72 | 2.95 | 7.75 | 9.03 |
| P/B Ratio | 1.93 | 2.59 | 1.62 | 1.23 | 1.20 | 1.26 | 1.35 | 1.50 | 1.10 | 2.49 | 15.18 |
| P/FCF | 15.76 | 21.50 | 8.49 | 6.37 | 9.17 | 9.22 | 9.15 | 11.54 | 7.57 | 33.30 | 31.71 |
| P/OCF | 14.39 | 19.63 | 7.98 | 6.09 | 8.71 | 8.72 | 8.68 | 10.69 | 7.01 | 28.37 | 27.68 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.08 | 4.35 | 3.76 | 4.71 | 4.73 | 4.88 | 5.37 | 4.78 | 10.11 | 10.25 |
| EV / EBITDA | 10.21 | 12.98 | 19.27 | — | 11.58 | 10.87 | 11.65 | 12.25 | 10.62 | 24.78 | 24.98 |
| EV / EBIT | 12.25 | 15.96 | 24.26 | 8.12 | 11.32 | 11.87 | 11.49 | 15.22 | 12.27 | 6.66 | 30.87 |
| EV / FCF | — | 26.90 | 11.82 | 10.01 | 13.19 | 13.23 | 13.56 | 16.68 | 12.27 | 43.43 | 36.00 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 83.5% | 83.5% | 82.9% | 82.1% | 82.6% | 82.1% | 82.7% | 82.8% | 81.2% | 74.3% | 73.6% |
| Operating Margin | 39.0% | 39.0% | 10.6% | -57.7% | 38.1% | 39.8% | 38.6% | 40.2% | 41.0% | 36.6% | 37.2% |
| Net Profit Margin | 30.3% | 30.3% | 11.9% | -52.7% | 24.1% | 26.5% | 24.8% | 22.0% | 24.6% | 191.8% | 32.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 15.8% | 15.8% | 6.0% | -22.3% | 9.3% | 10.4% | 10.1% | 8.8% | 9.5% | 108.1% | 69.2% |
| ROA | 6.8% | 6.8% | 2.6% | -10.6% | 4.6% | 4.9% | 4.6% | 4.0% | 4.2% | 41.5% | 13.0% |
| ROIC | 9.3% | 9.3% | 2.4% | -11.5% | 7.2% | 7.4% | 7.1% | 7.2% | 6.9% | 8.1% | 17.2% |
| ROCE | 10.3% | 10.3% | 2.7% | -13.2% | 8.2% | 8.4% | 8.2% | 8.3% | 7.9% | 9.3% | 20.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.73 | 0.73 | 0.74 | 0.75 | 0.57 | 0.59 | 0.70 | 0.71 | 0.72 | 0.81 | 2.32 |
| Debt / EBITDA | 2.92 | 2.92 | 6.33 | — | 3.84 | 3.55 | 4.07 | 4.00 | 4.31 | 6.19 | 3.36 |
| Net Debt / Equity | — | 0.65 | 0.63 | 0.71 | 0.52 | 0.55 | 0.65 | 0.67 | 0.68 | 0.76 | 2.06 |
| Net Debt / EBITDA | 2.60 | 2.60 | 5.42 | — | 3.53 | 3.30 | 3.78 | 3.78 | 4.07 | 5.78 | 2.98 |
| Debt / FCF | — | 5.40 | 3.33 | 3.64 | 4.02 | 4.01 | 4.40 | 5.14 | 4.71 | 10.13 | 4.30 |
| Interest Coverage | 5.06 | 5.06 | 4.22 | 6.70 | 6.92 | 6.87 | 6.13 | 5.04 | 6.43 | 24.81 | 6.89 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.87 | 0.87 | 0.76 | 0.91 | 0.86 | 0.85 | 0.88 | 0.71 | 0.78 | 0.90 | 1.04 |
| Quick Ratio | 0.57 | 0.57 | 0.52 | 0.59 | 0.55 | 0.50 | 0.49 | 0.38 | 0.41 | 0.52 | 0.55 |
| Cash Ratio | 0.26 | 0.26 | 0.31 | 0.19 | 0.23 | 0.22 | 0.22 | 0.14 | 0.17 | 0.22 | 0.19 |
| Asset Turnover | — | 0.23 | 0.22 | 0.23 | 0.18 | 0.19 | 0.19 | 0.18 | 0.17 | 0.14 | 0.36 |
| Inventory Turnover | 0.96 | 0.96 | 0.96 | 0.99 | 0.85 | 0.87 | 0.74 | 0.73 | 0.76 | 0.86 | 0.64 |
| Days Sales Outstanding | — | 54.19 | 40.29 | 50.74 | 59.60 | 57.81 | 53.81 | 47.52 | 42.74 | 61.68 | 69.64 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 5.5% | 4.1% | 6.5% | 7.7% | 5.4% | 5.8% | 5.6% | 4.8% | 6.0% | 2.3% | 2.3% |
| Payout Ratio | 66.0% | 66.0% | 169.9% | — | 73.7% | 72.1% | 74.1% | 80.6% | 72.1% | 9.2% | 62.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.3% | 6.2% | 3.7% | — | 7.3% | 7.9% | 7.4% | 5.9% | 8.3% | 27.3% | 4.4% |
| FCF Yield | 6.3% | 4.7% | 11.8% | 15.7% | 10.9% | 10.8% | 10.9% | 8.7% | 13.2% | 3.0% | 3.2% |
| Buyback Yield | 1.3% | 0.9% | 1.0% | 0.2% | 2.3% | 0.1% | 0.0% | 0.1% | 0.2% | 0.1% | 0.1% |
| Total Shareholder Yield | 6.8% | 5.0% | 7.4% | 7.9% | 7.7% | 5.9% | 5.6% | 4.9% | 6.2% | 2.4% | 2.3% |
| Shares Outstanding | — | $2.2B | $2.2B | $2.2B | $2.3B | $2.3B | $2.3B | $2.3B | $2.3B | $2.3B | $2.3B |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying BTI stock.
British American Tobacco p.l.c.'s current P/E ratio is 12.1x. The historical average is 23.3x. This places it at the 10th percentile of its historical range.
British American Tobacco p.l.c.'s current EV/EBITDA is 10.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.4x.
British American Tobacco p.l.c.'s return on equity (ROE) is 15.8%. The historical average is 37.7%.
Based on historical data, British American Tobacco p.l.c. is trading at a P/E of 12.1x. This is at the 10th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
British American Tobacco p.l.c.'s current dividend yield is 5.52% with a payout ratio of 66.0%.
British American Tobacco p.l.c. has 83.5% gross margin and 39.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
British American Tobacco p.l.c.'s Debt/EBITDA ratio is 2.9x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
US regulatory and volume decline
Margin Compression Amid Transition
Operating margin slipped to 38.2% in 2026Q2 from 42.0% a year earlier, while gross margin held near 83%, according to quarterly filings. This suggests rising promotional costs in New Categories are eroding profitability.
The gross margin stability at roughly 83% underscores BTI's pricing power in combustibles, but the operating margin decline indicates that incremental investment in vapor and heated tobacco is not yet fully offsetting legacy volume declines. The 2023Q4 operating margin of -156.7% was distorted by the $31.5B impairment, so the underlying trend is better captured by the 2025Q2 to 2026Q2 comparison. Investors should monitor whether New Category contribution to profit reaches a tipping point that can restore operating leverage.
ROIC Stagnation Signals Transition Costs
ROIC has hovered between 3.6% and 4.8% over the past two years, well below the cost of capital, as per financial statements. This suggests the portfolio shift is consuming capital without yet generating commensurate returns.
The 2023Q4 ROIC of -16.2% was an impairment-driven anomaly, but the subsequent recovery to only 4.4% in 2026Q2 indicates that the underlying business is not compounding returns. The gap between ROIC and the ~6% cost of debt implies value destruction on incremental capital, though this may be temporary if New Categories achieve scale. The stability of ROIC despite margin pressure suggests that asset efficiency, not just margins, is a constraint.
Negative CCC Masks Working Capital Leverage
BTI's cash conversion cycle improved to -50 days in 2026Q2 from -85 days in 2021Q4, driven by extended payables, as reported in financial statements. This negative CCC indicates BTI is using supplier financing to fund operations.
The negative CCC is a structural feature of the tobacco industry, where DPO of 162 days in 2026Q2 far exceeds DSO of 28 days and DIO of 83 days. However, the recent shortening of the CCC from -163 days in 2025Q2 to -50 days suggests that BTI is paying suppliers faster or carrying more inventory, which could strain liquidity. The DIO spike to 192 days in 2025Q4 and subsequent drop to 83 days in 2026Q2 indicates inventory management volatility that warrants monitoring.
Debt Load Persists Despite Deleveraging
Debt-to-equity rose to 0.72 in 2026Q2 from 0.59 in 2021Q4, while interest coverage fell to 5.65x from 9.51x in 2022Q4, based on balance sheet data. This suggests debt service is becoming less comfortable.
The reported D/E of 0.73% in the snapshot appears to be a data error, as the ratio data shows 0.72, which is more consistent with BTI's history. The decline in interest coverage from 9.51x in 2022Q4 to 5.65x in 2026Q2 reflects both higher debt levels and rising interest rates. While coverage remains adequate, the trend is unfavorable, and the Altman Z-Score of 1.46 indicates elevated financial stress risk. Investors should monitor refinancing needs given the $35.1B debt load.
Liquidity Buffer Thins to Critical Levels
Current ratio fell to 0.84 in 2026Q2 from 0.91 in 2023Q4, with cash dropping to $2.5B, as per quarterly data. This suggests BTI may struggle to meet short-term obligations without external financing.
The quick ratio of 0.50 in 2026Q2 indicates that inventory is a significant component of current assets, but given the negative CCC, BTI relies on supplier credit rather than cash. The declining cash balance from $5.3B in 2024Q4 to $2.5B in 2026Q2, combined with a current ratio below 1, suggests that BTI is operating with a thin liquidity cushion. While the negative CCC provides some buffer, a sudden disruption in supplier terms or a working capital shock could strain liquidity.
P/E Misleads on Impairment Distortions
The trailing P/E of 12.62 is distorted by the 2023 impairment, while forward P/E of 16.46 better reflects normalized earnings, as per valuation data. Investors should use EV/EBITDA or P/FCF to assess BTI's true value.
The P/E ratio is commonly misapplied to BTI because the $31.5B non-cash impairment in 2023Q4 created a massive earnings loss, making trailing P/E meaningless. The forward P/E of 16.46 is more indicative, but it still relies on analyst estimates that may not capture the full cost of the New Category transition. EV/EBITDA of 10.54 is a more stable metric, as it excludes depreciation and amortization, but it also ignores the cash flow impact of working capital swings. P/FCF of 16.45 is arguably the most relevant, as it reflects the cash available for dividends and debt reduction, which is the core of BTI's investment thesis.