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British American TobaccoCHIX:BATSL +2.89%71 EV-to-OCF is 20.84 as of Jul. 29, 2026, which is 79% above its 10-year median of 11.63. GuruFocus rates CHIX:BATSL with a GF Score™ of 71/100 and a GF Value™ of £27.93 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 49 Tobacco Products companies, British American Tobacco ranks worse than 81.63% on this metric.
The historical rank and industry rank for British American Tobacco's EV-to-OCF or its related term are showing as below:
CHIX:BATSl'
s EV-to-OCF Range Over the Past 10 Years
Min: 8.22 Med: 11.63 Max: 28.11
Current: 20.84
During the past 13 years, the highest EV-to-OCF of British American Tobacco was 28.11. The lowest was 8.22. And the median was 11.63.
CHIX:BATSl's EV-to-OCF is ranked worse than 81.63% of 49
companies
in the Tobacco Products industry
Industry Median: 6.82
vs CHIX:BATSl: 20.84
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
British American Tobacco (CHIX:BATSl) EV-to-OCF Explanation
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
British American Tobacco's PE Ratio (TTM) for today is calculated as:
British American Tobacco's share price for today is £46.925.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. British American Tobacco's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 was £3.491.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
British American Tobacco EV-to-OCF Related Terms
British American Tobacco EV-to-OCF 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-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where British American Tobacco's EV-to-OCF falls into.
British American Tobacco's current Enterprise Value is £132,153 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. British American Tobacco's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was £6,342 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-OCF of 20.84 as of Jul. 29, 2026. This is 79% above median its historical median of 11.63. Over the past decade, British American Tobacco's EV-to-OCF has ranged from 8.22 to 28.11. According to the industry distribution chart, British American Tobacco ranks #40 out of 49 companies in the Tobacco Products industry, placing it in the top 81.6%.
Is British American Tobacco's EV-to-OCF too high?
British American Tobacco's current EV-to-OCF of 20.84 is 79% above median its 10-year median of 11.63. Over the past 10 years, this metric has ranged from a low of 8.22 to a high of 28.11. The Tobacco Products industry median EV-to-OCF is 6.82. British American Tobacco's value of 20.84 is 205.6% above this industry median. Based on the distribution chart, British American Tobacco ranks #40 out of 49 companies in the Tobacco Products industry, which is in the bottom quartile relative to peers. 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-OCF compare to PM and MO?
According to the Tobacco Products industry distribution chart, British American Tobacco ranks #40 out of 49 companies for EV-to-OCF. This places British American Tobacco in the lower half of its industry. The industry median EV-to-OCF is 6.82. British American Tobacco's value of 20.84 is 205.6% above this benchmark. Historically, British American Tobacco's own EV-to-OCF has ranged from 8.22 to 28.11 over the past decade. While the company's 10-year median is 11.63 vs. the industry median of 6.82, 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-OCF for a Tobacco Products company?
The median EV-to-OCF among Tobacco Products companies is 6.82, based on 49 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. British American Tobacco's current EV-to-OCF of 20.84 is 205.6% 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Tobacco Products industry, the median EV-to-OCF is 6.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. British American Tobacco's current EV-to-OCF is 20.84, which is 79% above median its own 10-year median of 11.63. 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 £27.93, compared to a current price of £46.93 — trading 68% above its estimated fair value. The current EV-to-OCF is 20.84, which is 79% above median its 10-year median of 11.63 and 205.6% above the Tobacco Products industry median of 6.82. 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-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For British American Tobacco (CHIX:BATSL), the current EV-to-OCF is 20.84 as of Jul. 29, 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 £46.93 is trading 68% above its estimated GF Value™ of £27.93.
GuruFocus considers British American Tobacco to be Significantly Overvalued.
Key valuation signals for CHIX:BATSL:
EV-to-OCF: 20.84 (79% above median its 10-year median of 11.63)
GF Value™: £27.93 vs. price of £46.93 (68% above fair value)
Industry Position: 205.6% above the Tobacco Products median (#40 of 49)
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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