British Stock Performance

BTI -  USA Stock  

USD 43.11  0.26  0.61%

British Amer has performance score of 2 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.6293, which signifies possible diversification benefits within a given portfolio. Let's try to break down what British's beta means in this case. As returns on the market increase, British Amer returns are expected to increase less than the market. However, during the bear market, the loss on holding British Amer will be expected to be smaller as well. Although it is extremely important to respect British American Tobacco historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing British American Tobacco technical indicators, you can presently evaluate if the expected return of 0.0558% will be sustainable into the future. British American Tobacco right now shows a risk of 1.44%. Please confirm British American Tobacco jensen alpha, semi variance, day typical price, as well as the relationship between the maximum drawdown and accumulation distribution to decide if British American Tobacco will be following its price patterns.
  
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British Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in British American Tobacco are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, British Amer is not utilizing all of its potentials. The new stock price disturbance, may contribute to mid-run losses for the stockholders. ...more

British Price Channel

Quick Ratio0.48
Fifty Two Week Low33.62
Target High Price51.12
Fifty Two Week High47.24
Payout Ratio73.62%
Trailing Annual Dividend Yield5.00%
Target Low Price48.00

British Amer Relative Risk vs. Return Landscape

If you would invest  3,434  in British American Tobacco on February 20, 2022 and sell it today you would earn a total of  877.00  from holding British American Tobacco or generate 25.54% return on investment over 90 days. British American Tobacco is generating 0.0558% of daily returns assuming volatility of 1.4382% on return distribution over 90 days investment horizon. In other words, 12% of stocks are less volatile than British, and above 99% of all equities are expected to generate higher returns over the next 90 days.
 Daily Expected Return (%) 
      Risk (%) 
Considering the 90-day investment horizon British Amer is expected to generate 1.38 times more return on investment than the market. However, the company is 1.38 times more volatile than its market benchmark. It trades about 0.04 of its potential returns per unit of risk. The DOW is currently generating roughly 0.04 per unit of risk.

British Amer Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for British Amer's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as British American Tobacco, and traders can use it to determine the average amount a British Amer's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.0388

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Estimated Market Risk
 1.44
  actual daily
 
 12 %
of total potential
 
1212
Expected Return
 0.06
  actual daily
 
 1 %
of total potential
 
11
Risk-Adjusted Return
 0.04
  actual daily
 
 2 %
of total potential
 
22
Based on monthly moving average British Amer is performing at about 2% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of British Amer by adding it to a well-diversified portfolio.

About British Amer Performance

To evaluate British American Tobacco Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when British Amer generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare British Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand British American Tobacco stock market performance in a much more refined way. At Macroaxis, we take it even further. The Macroaxis performance score is an integer between 0 and 100 that represents British's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2022
Effect of Exchange Rate Changes on Cash-227.7 M-233.7 M
Return on Investment 10.61  16.60 
Return on Average Assets 0.049  0.07 
Return on Average Equity 0.11  0.11 
Return on Invested Capital 0.23  0.24 
Return on Sales 0.41  0.51 
British American Tobacco p.l.c. provides tobacco and nicotine products to consumers worldwide. British American Tobacco p.l.c. was founded in 1902 and is based 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.

Things to note about British American Tobacco

Checking the ongoing alerts about British Amer for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for British American Tobacco help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

British Amer Alerts

Equity Alerts and Improvement Suggestions

The company has 39.66 B in debt with debt to equity (D/E) ratio of 0.59, which is OK given its current industry classification. British American Tobacco has a current ratio of 0.83, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist British Amer until it has trouble settling it off, either with new capital or with free cash flow. So, British Amer's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like British American Tobacco sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for British to invest in growth at high rates of return. When we think about British Amer's use of debt, we should always consider it together with cash and equity.
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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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.
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.