British Amer Valuation

BTI Stock  USD 31.07  0.77  2.54%   
At this time, the firm appears to be undervalued. British American Tobacco shows a prevailing Real Value of $37.89 per share. The current price of the firm is $31.07. Our model approximates the value of British American Tobacco from analyzing the firm fundamentals such as Return On Equity of -0.22, current valuation of 113.57 B, and Profit Margin of (0.53) % as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor purchasing undervalued instruments and trading away overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Price Book
1.0071
Enterprise Value
113.6 B
Enterprise Value Ebitda
12.8676
Price Sales
2.4979
Forward PE
6.5833
Undervalued
Today
31.07
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.
Historical Market  31.07 Real  37.89 Target  45.17 Hype  31.09
The real value of a stock, also known as the intrinsic value, is the underlying worth of a company that is reflected in its stock price. It is based on the company's financial performance, assets, liabilities, growth prospects, management team, industry conditions, and other relevant factors. The real value of a stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, price-to-book ratio, and other valuation metrics. The real value of a stock may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence the stock's price. It is important to note that the real value of a stock is not a fixed number and may change over time based on changes in the company's performance and other relevant factors.
37.89
Real Value
39.16
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:
Hype
Prediction
LowEstimatedHigh
29.8231.0932.36
Details
6 Analysts
Consensus
LowTarget PriceHigh
41.1045.1750.14
Details

British Amer Investments

(310.8 Million)

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 rated below average in price to earning category among related companies. It is rated below average in beta category among related companies totaling about  0.02  of Beta per Price To Earning. The ratio of Price To Earning to Beta for British American Tobacco is roughly  43.38 . 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 stock 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 2024
Gross Profit22.6 B13.7 B
Pretax Profit Margin(0.63)(0.59)
Operating Profit Margin(0.58)(0.55)
Net Loss(0.53)(0.50)
Gross Profit Margin 0.83  0.62 

8 Steps to conduct British Amer's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates British Amer's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct British Amer's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain British Amer's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine British Amer's revenue streams: Identify British Amer's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research British Amer's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish British Amer's growth potential: Evaluate British Amer's management, business model, and growth potential.
  • Determine British Amer's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate British Amer's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
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

As of now, British Amer's Dividend Yield is increasing as compared to previous years. The British Amer's current Dividend Paid And Capex Coverage Ratio is estimated to increase to 2.53, while Dividends Paid is forecasted to increase to (4.8 B). . The British Amer's current Retained Earnings is estimated to increase to about 33.2 B, while Price Earnings Ratio is forecasted to increase to (3.44).
Last ReportedProjected for 2024
Dividends Paid-5.1 B-4.8 B
Dividend Yield 0.1  0.10 
Dividend Payout Ratio(0.35)(0.33)
Dividend Paid And Capex Coverage Ratio 2.41  2.53 
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 Growth Indicators

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.
Common Stock Shares Outstanding2.3 B
Quarterly Earnings Growth Y O Y1.178
Forward Price Earnings6.5833

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.
When determining whether British American Tobacco offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of British Amer's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of British American Tobacco Stock. Outlined below are crucial reports that will aid in making a well-informed decision on British American Tobacco Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in British American Tobacco. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.
You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

Complementary Tools for British Stock analysis

When running British Amer's 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 the 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
1.178
Dividend Share
2.309
Earnings Share
(8.28)
Revenue Per Share
2.448
Quarterly Revenue Growth
(0.06)
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 if British Amer is a good investment 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.