British Stock Valuation

BTI
 Stock
  

USD 41.00  2.28  5.27%   

Do you want to know what the current value of British American Tobacco is today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as British Amer, is its stock price multiplied by the total number of shares outstanding, calculating British Amer's enterprise value requires a different approach. It uses British Amer's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current Tangible Asset Value is estimated to increase to about 22.4 B, while Free Cash Flow is projected to decrease to roughly 9.6 B.
British American Tobacco shows a prevailing Real Value of $50.51 per share. The current price of the firm is $41.0. At this time, the firm appears to be undervalued. Our model approximates the value of British American Tobacco from analyzing the firm fundamentals such as Return On Equity of 10.70 %, current valuation of 132.3 B, and Profit Margin of 26.48 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor locking in undervalued instruments and disposing overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
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British Amer Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as British Amer's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

British Most Recent Valuation Data

Price Book
1.21
Address
Globe House, London, United Kingdom, WC2R 2PG
Price Sales
3.81
Forward Annual Dividend Yield
0.0684
EBITDA
11.9 B
Dividend Share
2.16
Ex Dividend Date
2022-07-07
Undervalued
Today 41.00
Please note that British Amer's price fluctuation is very steady at this time. Calculation of the real value of British American Tobacco is based on 3 months time horizon. Increasing British Amer's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for British American Tobacco is useful when determining the fair value of the British stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of British Amer. Since British Amer is currently traded on the exchange, buyers and sellers on that exchange determine the market value of British Stock. However, British Amer's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
50.51
Real Value
51.95
Upside
Estimating the potential upside or downside of British American Tobacco helps investors to forecast how British stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of British Amer more accurately as focusing exclusively on British Amer's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
41.6743.4545.23
Details
Hype
Prediction
LowEstimated ValueHigh
41.8443.2844.72
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.470.470.48
Details
4 Analysts
Consensus
LowTarget PriceHigh
50.0050.5651.12
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use British Amer's intrinsic value based on its ongoing forecasts of British Amer's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against British Amer's closest peers. When choosing an evaluation method for British American Tobacco, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

British Amer Investments

2.49 Billion

Share

British Valuation Drivers Correlation

Many accounts on the financial statements of British American Tobacco are highly interrelated and sometimes correlated. Consequently, when conducting British's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of British
Click cells to compare fundamentals

British Valuation Trend

Knowing British Amer's actual value is paramount for traders to make sound investment determinations. British Amer's real value is not only important for the investor to make better decisions but also for a more accurate overall view of British Amer's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both British Amer's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

British Market Cap

British American Tobacco is number one stock in market capitalization category among related companies. Market capitalization of Tobacco industry is currently estimated at about 3.57 Trillion. British Amer holds roughly 98.47 Billion in market capitalization claiming about 2.76% of equities listed under Tobacco industry.
Capitalization  Total debt  Valuation  Workforce  Revenue

British Amer Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining British Amer's current stock value. Our valuation model uses many indicators to compare British Amer value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across British Amer competition to find correlations between indicators driving British Amer's intrinsic value. More Info.
British American Tobacco is number one stock in five year return category among related companies. It is number one stock in price to earning category among related companies reporting about  1.91  of Price to Earning per Five Year Return. The current Price to Earnings Ratio is estimated to increase to 9.70. The current Earnings Before Interest Taxes and Depreciation Amortization EBITDA is estimated to increase to about 12.2 B. Comparative valuation analysis is a catch-all model that can be used if you cannot value British Amer by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for British Amer's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the British Amer's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates British Amer's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in British Amer and how it compares across the competition.

About British Amer Valuation

The equity valuation mechanism determines the current worth of British American Tobacco on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of British American Tobacco. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of British American Tobacco based exclusively on its fundamental and basic technical indicators. By analyzing British Amer's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of British Amer's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of British Amer. We calculate exposure to British Amer's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to British Amer's related companies.
Last ReportedProjected for 2022
Gross Profit21.3 B19.4 B
Profit Margin 0.27  0.39 
British American Tobacco p.l.c. provides tobacco and nicotine products to consumers worldwide. British American Tobacco p.l.c. was incorporated in 1902 and is headquartered in London, the United Kingdom. British Amer operates under Tobacco classification in the United States and is traded on New York Stock Exchange. It employs 54365 people.

British Amer Quarterly Enterprise Value

150.23 Billion

Share
British Amer's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether British Amer's value is low or high relative to the company's performance and growth projections. Determining the market value of British Amer can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of British Amer represents a small ownership stake in the entity. As a stockholder of British, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

British Amer Dividends Analysis For Valuation

Please note that British Amer has scaled down on payment of dividends at this time. British Amer Earnings per Diluted Share are most likely to slightly grow in the upcoming years. The last year's value of Earnings per Diluted Share was reported at 2.96. The current Price to Earnings Ratio is estimated to increase to 9.70, while Accumulated Retained Earnings Deficit are projected to decrease to roughly 38 B.
There are various types of dividends British Amer can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of British shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from British American Tobacco directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When British pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of British Amer by the value of the dividends paid out.

British Amer Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as British Amer does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.48
Earnings Quarterly Growth20.70%
Payout Ratio73.62%
Enterprise Value To Ebitda11.08
Earnings Growth20.10%
Enterprise Value To Revenue5.15

British Amer Current Valuation Indicators

Valuation refers to the process of determining the present value of British American Tobacco and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value British we look at many different elements of the entity such as British's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. British Amer's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final British Amer's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as British Amer, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use British Amer's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes British Amer's worth.
Continue to Trending Equities. Note that the British American Tobacco information on this page should be used as a complementary analysis to other British Amer's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

Complementary Tools for British Stock analysis

When running British American Tobacco price analysis, check to measure British Amer's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy British Amer is operating at the current time. Most of British Amer's value examination focuses on studying past and present price action to predict the probability of British Amer's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move British Amer's price. Additionally, you may evaluate how the addition of British Amer to your portfolios can decrease your overall portfolio volatility.
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Is British Amer's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of British Amer. If investors know British will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about British Amer listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.2
Market Capitalization
97.7 B
Return On Assets
0.05
Return On Equity
0.11
The market value of British American Tobacco is measured differently than its book value, which is the value of British that is recorded on the company's balance sheet. Investors also form their own opinion of British Amer's value that differs from its market value or its book value, called intrinsic value, which is British Amer's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because British Amer's market value can be influenced by many factors that don't directly affect British Amer's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between British Amer's value and its price as these two are different measures arrived at by different means. Investors typically determine British Amer value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, British Amer's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.