| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 72 | 11.7x | 17.8x | Top tier | |
Growth | 30 | -1.0% | 7.1% | Bottom tier | |
Quality | 95 | — | 4.5% | Top tier | |
Safety | 53 | 2.8x | 2.6x | Around median | |
Capital Return | 81 | — | 2.12% | Top tier | |
Momentum | 42 | 1.5% | 2.9% | Around median | |
Sentiment | 77 | 4 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
British American Tobacco p.l.c. (BTI) operates through a multi-category portfolio combining combustibles and new nicotine categories: modern oral tobacco through Velo, vapor products through Vuse, and heated tobacco products through glo. Combustibles remain the value engine funding the transformation, while the share of smokeless products rose to 19.8% of Group revenue in Q2 FY2026, up 160 basis points year over year, and their consumer base reached 35 million after adding 4.1 million consumers over 12 months.
In Q2 FY2026, first-half Group revenue increased 2.9% at constant currency, adjusted gross profit rose 3.8%, and adjusted operating profit increased 3.5%, while the operating margin expanded by 30 basis points to 43.7%. Adjusted diluted earnings per share grew 7.9%, and New Categories recorded revenue growth of 18% and a contribution of £269 million after growing 55%, while combustibles revenue increased 2.1% despite a 4.7% decline in volumes, driven by a 6.8% price/mix effect.
The geographic mix varied markedly in the first half of FY2026; US revenue rose 8.5% and adjusted operating profit increased 10.1%, compared with AME revenue growth of 0.9% and declines of 6.3% in APMEA revenue and 16.5% in its adjusted profit. For FY2025, revenue was $25.6 billion, net income was $7.8 billion, and earnings per share were 3.491, compared with revenue of $25.9 billion and net income of $3.2 billion in FY2024.
The analyst consensus is "Buy," with an average target of $40 and identical high and low estimates of $40, indicating no dispersion in the available sample but also limiting the strength of comparison among opinions. This target is below the lower end of the 52-week range of $49.88 and below the upper end of $67.30, while the available data do not provide a valid price-to-earnings ratio; therefore, the valuation framework combines a nominally positive consensus with a price-target signal that is more conservative than the entire displayed annual trading range.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Modern oral tobacco is driving growth, with its revenue increasing 66% in the first half of FY2026, while total New Categories revenue rose 18%. Velo Plus grew by more than 200% in the US, and the company added 4.1 million smokeless product consumers over 12 months, bringing the total to 35 million. In the July 30, 2026 presentation, management projected mid-teens New Categories revenue growth in FY2026, led by Velo and Vuse.
Yes, the contribution from New Categories rose 55% to £269 million in the first half of FY2026. Gross profit from these categories also increased by more than £120 million, reflecting greater scale and more selective investment. At the Group level, adjusted operating profit increased 3.5%, and the operating margin expanded by 30 basis points to 43.7%.
BAT intends to launch Velo Max in the US in Q3 FY2026 in two strengths and four new flavors, complementing Velo Plus and increasing the available strength levels within the family to five. For Vuse, distribution of adult-oriented flavors will begin across approximately 25 thousand outlets in Q3, followed by a second rollout to approximately 25 thousand outlets in Q4. These launches follow Vuse reaching a 55.9% value share and BAT attaining a 31% volume share of US modern oral tobacco in the first half of FY2026.
Automated analysis for informational purposes only — not investment advice.
Combustibles volumes declined 4.7% in the first half of FY2026, and the company revised its estimate for the decline in global cigarette industry volumes to 3% because of Brazil. APMEA revenue declined 6.3%, and its adjusted profit fell 16.5% due to regulation, illicit trade, and inventory movements, while glo revenue declined nearly 12% because of competition and inventory movements. Vapor revenue also fell 14% in AME and 28% in APMEA due to regulatory changes and selective market exits.
Management raised its earnings per share growth guidance to near the midpoint of the 5% to 8% range in FY2026, following 7.9% growth in adjusted diluted earnings per share in the first half. It expects a net finance cost of approximately £1.65 billion and an underlying tax rate of between 24% and 25%, with cash conversion exceeding 95%. It also targets leverage of between 2 and 2.5 times by the end of FY2026, alongside a £1.3 billion share buyback.
In FY2025, the company recorded revenue of $25.6 billion, net income of $7.8 billion, and earnings per share of 3.491. This compares with revenue of $25.9 billion, net income of $3.2 billion, and earnings per share of 1.36 in FY2024. Profit also improved significantly compared with FY2023, which recorded a net loss of $14.2 billion and negative earnings per share of 6.466.
