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British American Tobacco (CHIX:BATSl) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
British American Tobacco Forward PE Ratio Related Terms
British American Tobacco Forward PE Ratio 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.
British American Tobacco Forward PE Ratio Chart
British American Tobacco Annual Data
Trend
2019-12
2020-12
2021-12
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
9.63
7.89
7.60
8.18
6.17
7.76
11.59
British American Tobacco Semi-Annual Data
2019-12
2020-06
2020-12
2021-06
2021-12
2022-06
2022-12
2023-06
2023-12
2024-06
2024-12
2025-06
2025-12
Forward PE Ratio
9.63
9.43
7.89
8.58
7.60
9.64
8.18
6.95
6.17
7.10
7.76
9.99
11.59
CHIX:BATSL vs PM, MO, TPB: Forward PE Ratio Comparison
For the Tobacco subindustry, British American Tobacco's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where British American Tobacco's Forward PE Ratio falls into.
British American Tobacco Forward PE Ratio Calculation
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
British American Tobacco (CHIX:BATSL) has a Forward PE Ratio of 12.20 as of Jul. 14, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on British American Tobacco and its competitors. According to the industry distribution chart, British American Tobacco ranks #13 out of 24 companies in the Tobacco Products industry, placing it in the top 54.2%.
Is British American Tobacco's Forward PE Ratio too high?
British American Tobacco's current Forward PE Ratio is 12.20. The Tobacco Products industry median Forward PE Ratio is 12.13. British American Tobacco's value of 12.20 is 0.6% above this industry median. Based on the distribution chart, British American Tobacco ranks #13 out of 24 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 Forward PE Ratio compare to PM and MO?
According to the Tobacco Products industry distribution chart, British American Tobacco ranks #13 out of 24 companies for Forward PE Ratio. This places British American Tobacco in the lower half of its industry. The industry median Forward PE Ratio is 12.13. British American Tobacco's value of 12.20 is 0.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Tobacco Products company?
The median Forward PE Ratio among Tobacco Products companies is 12.13, based on 24 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. British American Tobacco's current Forward PE Ratio of 12.20 is 0.6% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on British American Tobacco and its competitors. For the Tobacco Products industry, the median Forward PE Ratio is 12.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. British American Tobacco's current Forward PE Ratio is 12.20. 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 £27.87, compared to a current price of £43.74 — trading 56.9% above its estimated fair value. The current Forward PE Ratio is 12.20 and 0.6% above the Tobacco Products industry median of 12.13. British American Tobacco's overall GF Score™ is 71/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For British American Tobacco (CHIX:BATSL), the current Forward PE Ratio is 12.20 as of Jul. 14, 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 £43.74 is trading 56.9% above its estimated GF Value™ of £27.87.
GuruFocus considers British American Tobacco to be Significantly Overvalued.
Key valuation signals for CHIX:BATSL:
Forward PE Ratio: 12.20
GF Value™: £27.87 vs. price of £43.74 (56.9% above fair value)
Industry Position: 0.6% above the Tobacco Products median (#13 of 24)
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
Get the complete analysis for CHIX:BATSL
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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