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British American TobaccoCHIX:BATSL +3.09%71 EV-to-EBIT is 11.22 as of Jul. 19, 2026, which is 4% above its 10-year median of 10.74. GuruFocus rates CHIX:BATSL with a GF Score™ of 71/100 and a GF Value™ of £27.91 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 39 Tobacco Products companies, British American Tobacco ranks worse than 61.54% on this metric.
British American Tobacco (CHIX:BATSl) EV-to-EBIT Explanation
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
British American Tobacco's Enterprise Value for the quarter that ended in Dec. 2025 was £123,267 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. British American Tobacco's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was £11,786 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.
British American Tobacco EV-to-EBIT Related Terms
British American Tobacco EV-to-EBIT Historical Data
* 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.
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.
British American Tobacco's current Enterprise Value is £132,210 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. British American Tobacco's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was £11,786 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.
British American Tobacco (CHIX:BATSL) has a EV-to-EBIT of 11.22 as of Jul. 19, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on British American Tobacco and its competitors. This is near median its historical median of 10.74. According to the industry distribution chart, British American Tobacco ranks #24 out of 39 companies in the Tobacco Products industry, placing it in the top 61.5%.
Is British American Tobacco's EV-to-EBIT too high?
British American Tobacco's current EV-to-EBIT of 11.22 is near median its 10-year median of 10.74. The Tobacco Products industry median EV-to-EBIT is 9.88. British American Tobacco's value of 11.22 is 13.6% above this industry median. Based on the distribution chart, British American Tobacco ranks #24 out of 39 companies in the Tobacco Products industry, which is below the industry midpoint. Overall, British American Tobacco has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does British American Tobacco's EV-to-EBIT compare to PM and MO?
According to the Tobacco Products industry distribution chart, British American Tobacco ranks #24 out of 39 companies for EV-to-EBIT. This places British American Tobacco in the lower half of its industry. The industry median EV-to-EBIT is 9.88. British American Tobacco's value of 11.22 is 13.6% above this benchmark. While the company's 10-year median is 10.74 vs. the industry median of 9.88, British American Tobacco has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Tobacco Products company?
The median EV-to-EBIT among Tobacco Products companies is 9.88, based on 39 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. British American Tobacco's current EV-to-EBIT of 11.22 is 13.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on British American Tobacco and its competitors. For the Tobacco Products industry, the median EV-to-EBIT is 9.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. British American Tobacco's current EV-to-EBIT is 11.22, which is near median its own 10-year median of 10.74. 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 (CHIX:BATSL) is currently considered Significantly Overvalued. The stock's GF Value™ is £27.91, compared to a current price of £46.59 — trading 66.9% above its estimated fair value. The current EV-to-EBIT is 11.22, which is near median its 10-year median of 10.74 and 13.6% above the Tobacco Products industry median of 9.88. British American Tobacco's overall GF Score™ is 71/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For British American Tobacco (CHIX:BATSL), the current EV-to-EBIT is 11.22 as of Jul. 19, 2026. 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 (CHIX:BATSL) Overvalued in 2026?
Based on GuruFocus' analysis, British American Tobacco stock appears to be overvalued.
The current stock price of £46.59 is trading 66.9% above its estimated GF Value™ of £27.91.
GuruFocus considers British American Tobacco to be Significantly Overvalued.
Key valuation signals for CHIX:BATSL:
EV-to-EBIT: 11.22 (near median its 10-year median of 10.74)
GF Value™: £27.91 vs. price of £46.59 (66.9% above fair value)
Industry Position: 13.6% above the Tobacco Products median (#24 of 39)
No single metric tells the full story. See the CHIX:BATSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
71GF Score
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