British American TobaccoBTAFF +1.10%67 FCF Margin % is 25.66% as of Dec. 2025, which is 27% below its 10-year median of 34.99. 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. Among 48 Tobacco Products companies, British American Tobacco ranks better than 77.08% on this metric.
* 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 FCF Margin %, along with its competitors' market caps and FCF Margin % 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 FCF Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco's FCF Margin % distribution charts can be found below:
* The bar in red indicates where British American Tobacco's FCF Margin % falls into.
* 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 (BTAFF) has a FCF Margin % of 25.66% as of Dec. 2025. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on British American Tobacco and its competitors. This is 27% below median its historical median of 34.99. Over the past decade, British American Tobacco's FCF Margin % has ranged from 21.99 to 38.18. According to the industry distribution chart, British American Tobacco ranks #11 out of 48 companies in the Tobacco Products industry, placing it in the top 22.9%.
Is British American Tobacco's FCF Margin % too high?
British American Tobacco's current FCF Margin % of 25.66% is 27% below median its 10-year median of 34.99. Over the past 10 years, this metric has ranged from a low of 21.99 to a high of 38.18. The Tobacco Products industry median FCF Margin % is 3.56. British American Tobacco's value of 25.66% is 620.8% above this industry median. Based on the distribution chart, British American Tobacco ranks #11 out of 48 companies in the Tobacco Products industry, which is in the top quartile — a strong position relative to peers. 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 FCF Margin % compare to PM and MO?
According to the Tobacco Products industry distribution chart, British American Tobacco ranks #11 out of 48 companies for FCF Margin %. This places British American Tobacco in the top 23% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 3.56. British American Tobacco's value of 25.66% is 620.8% above this benchmark. Historically, British American Tobacco's own FCF Margin % has ranged from 21.99 to 38.18 over the past decade. While the company's 10-year median is 34.99 vs. the industry median of 3.56, 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 FCF Margin % for a Tobacco Products company?
The median FCF Margin % among Tobacco Products companies is 3.56, based on 48 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. British American Tobacco's current FCF Margin % of 25.66% is 620.8% 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 FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on British American Tobacco and its competitors. For the Tobacco Products industry, the median FCF Margin % is 3.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. British American Tobacco's current FCF Margin % is 25.66%, which is 27% below median its own 10-year median of 34.99. 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 $61.62 — trading 59.4% above its estimated fair value. The current FCF Margin % is 25.66%, which is 27% below median its 10-year median of 34.99 and 620.8% above the Tobacco Products industry median of 3.56. 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 FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For British American Tobacco (BTAFF), the current FCF Margin % is 25.66% 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 $61.62 is trading 59.4% above its estimated GF Value™ of $38.65.
GuruFocus considers British American Tobacco to be Significantly Overvalued.
Key valuation signals for BTAFF:
FCF Margin %: 25.66% (27% below median its 10-year median of 34.99)
GF Value™: $38.65 vs. price of $61.62 (59.4% above fair value)
Industry Position: 620.8% above the Tobacco Products median (#11 of 48)
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.
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
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