British American TobaccoLSE:BATS -3.01%71 EV-to-FCF is 22.95 as of Jul. 02, 2026, which is 82% above its 10-year median of 12.58. GuruFocus rates LSE:BATS with a GF Score™ of 71/100 and a GF Value™ of £27.88 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 32 Tobacco Products companies, British American Tobacco ranks worse than 75% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, British American Tobacco's Enterprise Value is £129,386 Mil.
British American Tobacco's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2025 was £5,638 Mil. Therefore, British American Tobacco's EV-to-FCF for today is 22.95.
The historical rank and industry rank for British American Tobacco's EV-to-FCF or its related term are showing as below:
LSE:BATS'
s EV-to-FCF Range Over the Past 10 Years
Min: 8.71 Med: 12.58 Max: 34.4
Current: 22.95
During the past 13 years, the highest EV-to-FCF of British American Tobacco was 34.40. The lowest was 8.71. And the median was 12.58.
LSE:BATS's EV-to-FCF is ranked worse than 75% of 32
companies
in the Tobacco Products industry
Industry Median: 14.29
vs LSE:BATS: 22.95
EV-to-FCF 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 (LSE:BATS) EV-to-FCF Explanation
EV-to-FCF 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 £45.36.
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. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
British American Tobacco EV-to-FCF Related Terms
British American Tobacco EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where British American Tobacco's EV-to-FCF falls into.
British American Tobacco's current Enterprise Value is £129,386 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. British American Tobacco's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2025 was £5,638 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 (LSE:BATS) has a EV-to-FCF of 22.95 as of Jul. 02, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on British American Tobacco and its competitors. This is 82% above median its historical median of 12.58. Over the past decade, British American Tobacco's EV-to-FCF has ranged from 8.71 to 34.40. According to the industry distribution chart, British American Tobacco ranks #24 out of 32 companies in the Tobacco Products industry, placing it in the top 75%.
Is British American Tobacco's EV-to-FCF too high?
British American Tobacco's current EV-to-FCF of 22.95 is 82% above median its 10-year median of 12.58. Over the past 10 years, this metric has ranged from a low of 8.71 to a high of 34.40. The Tobacco Products industry median EV-to-FCF is 14.29. British American Tobacco's value of 22.95 is 60.6% above this industry median. Based on the distribution chart, British American Tobacco ranks #24 out of 32 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-FCF compare to PM and MO?
According to the Tobacco Products industry distribution chart, British American Tobacco ranks #24 out of 32 companies for EV-to-FCF. This places British American Tobacco in the lower half of its industry. The industry median EV-to-FCF is 14.29. British American Tobacco's value of 22.95 is 60.6% above this benchmark. Historically, British American Tobacco's own EV-to-FCF has ranged from 8.71 to 34.40 over the past decade. While the company's 10-year median is 12.58 vs. the industry median of 14.29, 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-FCF for a Tobacco Products company?
The median EV-to-FCF among Tobacco Products companies is 14.29, based on 32 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. British American Tobacco's current EV-to-FCF of 22.95 is 60.6% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on British American Tobacco and its competitors. For the Tobacco Products industry, the median EV-to-FCF is 14.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. British American Tobacco's current EV-to-FCF is 22.95, which is 82% above median its own 10-year median of 12.58. 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 (LSE:BATS) is currently considered Significantly Overvalued. The stock's GF Value™ is £27.88, compared to a current price of £45.36 — trading 62.7% above its estimated fair value. The current EV-to-FCF is 22.95, which is 82% above median its 10-year median of 12.58 and 60.6% above the Tobacco Products industry median of 14.29. 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-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For British American Tobacco (LSE:BATS), the current EV-to-FCF is 22.95 as of Jul. 02, 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 (LSE:BATS) Overvalued in 2026?
Based on GuruFocus' analysis, British American Tobacco stock appears to be overvalued.
The current stock price of £45.36 is trading 62.7% above its estimated GF Value™ of £27.88.
GuruFocus considers British American Tobacco to be Significantly Overvalued.
Key valuation signals for LSE:BATS:
EV-to-FCF: 22.95 (82% above median its 10-year median of 12.58)
GF Value™: £27.88 vs. price of £45.36 (62.7% above fair value)
Industry Position: 60.6% above the Tobacco Products median (#24 of 32)
No single metric tells the full story. See the LSE:BATS 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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