BTAFF (British American Tobacco) EBIT: $15,897 Mil (TTM As of Dec. 2025)


BTAFF British American Tobacco PLC BTAFF
67 GF Score
Price $61.43
GF Value $38.65
Valuation Significantly Overvalued
! 6 Warning Signs
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What is British American Tobacco EBIT?

British American Tobacco BTAFF -0.31% 67 EBIT is $15,897 Mil as of Dec. 2025. GuruFocus rates BTAFF with a GF Score™ of 67/100 and a GF Value™ of $38.65 (Significantly Overvalued). The stock has 6 warning signs investors should review.

British American Tobacco's earnings before interest and taxes (EBIT) for the six months ended in Dec. 2025 was $7,019 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2025 was $15,897 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. British American Tobacco's annualized ROC % for the quarter that ended in Dec. 2025 was 9.60%. British American Tobacco's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 241.10%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. British American Tobacco's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 9.11%.


British American Tobacco  (OTCPK:BTAFF) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

British American Tobacco's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=17643.908 * ( 1 - 25.32% )/( (139663.5 + 134769.746)/ 2 )
=13176.4704944/137216.623
=9.60 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=149560.38 - 12774.763 - ( 6639.077 - max(0, 21704.206 - 18826.323+6639.077))
=139663.5

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=146305.221 - 13998.661 - ( 4696.118 - max(0, 19443.106 - 16979.92+4696.118))
=134769.746

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

British American Tobacco's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=14037.484/( ( (5643.148 + max(-5033.921, 0)) + (6001.339 + max(-2658.635, 0)) )/ 2 )
=14037.484/( ( 5643.148 + 6001.339 )/ 2 )
=14037.484/5822.2435
=241.10 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(4715.061 + 6903.664 + 568.521) - (12774.763 + 0 + 4446.404)
=-5033.921

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(5089.692 + 5866.131 + 1327.979) - (13998.661 + 0 + 943.776)
=-2658.635

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

British American Tobacco's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2025 )
=15896.625/174559.443
=9.11 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


British American Tobacco EBIT Related Terms


British American Tobacco EBIT Historical Data

* Premium members only.

The historical data trend for British American Tobacco's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

British American Tobacco EBIT Chart

British American Tobacco Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14,167.55 13,382.46 -19,207.60 6,776.23 15,777.78

British American Tobacco Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -27,086.08 7,512.72 -689.00 8,877.88 7,018.74

BTAFF vs PM, MO, TPB: EBIT Comparison

For the Tobacco subindustry, British American Tobacco's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


British American Tobacco EV-to-EBIT vs Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where British American Tobacco's EV-to-EBIT falls into.


BTAFF
67GF Score
British American Tobacco PLC BTAFF
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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British American Tobacco EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was $15,897 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $15,897 Mil mean?
British American Tobacco (BTAFF) has a EBIT of $15,897 Mil as of Dec. 2025. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on British American Tobacco.
Is British American Tobacco's EBIT too high?
British American Tobacco's current EBIT is $15,897 Mil. Overall, British American Tobacco has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does British American Tobacco's EBIT compare to PM and MO?
British American Tobacco's EBIT of $15,897 Mil can be compared against companies in the Tobacco Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Tobacco Products company?
A good EBIT depends on the Tobacco Products industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on British American Tobacco. British American Tobacco's current EBIT is $15,897 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is British American Tobacco stock overvalued right now?
Based on GuruFocus' analysis, British American Tobacco (BTAFF) is currently considered Significantly Overvalued. The stock's GF Value™ is $38.65, compared to a current price of $61.43 — trading 58.9% above its estimated fair value. The current EBIT is $15,897 Mil. British American Tobacco's overall GF Score™ is 67/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For British American Tobacco (BTAFF), the current EBIT is $15,897 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is British American Tobacco (BTAFF) Overvalued in 2026?

Based on GuruFocus' analysis, British American Tobacco stock appears to be overvalued. The current stock price of $61.43 is trading 58.9% above its estimated GF Value™ of $38.65. GuruFocus considers British American Tobacco to be Significantly Overvalued.

Key valuation signals for BTAFF:

  • EBIT: $15,897 Mil
  • GF Value™: $38.65 vs. price of $61.43 (58.9% above fair value)
  • GF Score™: 67/100 with 6 warning signs

No single metric tells the full story. See the BTAFF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


British American Tobacco Business Description

Address Globe House, 4 Temple Place, London, GBR, WC2R 2PG
The third-largest tobacco company by volume, British American Tobacco sold 465 billion cigarettes in 2025. Its leading brands are Dunhill, Kent, Pall Mall, Lucky Strike, and Rothmans in cigarettes. Its ownership of the Camel, Natural American Spirit, and Newport brands are limited to the US. In next-generation products, the company has the Vuse brand in vaping, Glo in heated tobacco, and Velo in modern oral tobacco. The company also owns a 22.9% stake in ITC limited, the largest Indian cigarette company.
67GF Score

Get the complete analysis for BTAFF

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$61.43
Price
$38.65
GF Value