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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.
The historical rank and industry rank for British American Tobacco Kenya's Graham Number or its related term are showing as below:
NAI:BAT'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.9 Med: 0.93 Max: 1.66
Current: 1.29
During the past 7 years, the highest Price to Graham Number ratio of British American Tobacco Kenya was 1.66. The lowest was 0.90. And the median was 0.93.
NAI:BAT's Price-to-Graham-Number is ranked better than 56% of 25
companies
in the Tobacco Products industry
Industry Median: 1.27
vs NAI:BAT: 1.29
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
British American Tobacco Kenya (NAI:BAT) Graham Number Explanation
Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:
Current price should not be more than 15 times average earnings of the past three years.
Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)
Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.
In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.
British American Tobacco Kenya's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Dec. 2025 )
=
551.00
/
427.53
=
1.29
* 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.
Be Aware
Please keep these in mind:
1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.
British American Tobacco Kenya Graham Number Related Terms
British American Tobacco Kenya Graham Number 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 Kenya Graham Number Chart
For the Tobacco subindustry, British American Tobacco Kenya's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number 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 Kenya Price-to-Graham-Number vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco Kenya's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where British American Tobacco Kenya's Price-to-Graham-Number 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 Kenya (NAI:BAT) has a Graham Number of KES427.53 as of Dec. 2025. The Graham Number values a company based on its per-share earnings and book value. View historical data on British American Tobacco Kenya and its competitors. This is 45871% above median its historical median of 0.93. Over the past decade, British American Tobacco Kenya's Graham Number has ranged from 0.90 to 1.66. According to the industry distribution chart, British American Tobacco Kenya ranks #11 out of 25 companies in the Tobacco Products industry, placing it in the top 44%.
Is British American Tobacco Kenya's Graham Number too high?
British American Tobacco Kenya's current Graham Number of KES427.53 is 45871% above median its 10-year median of 0.93. Over the past 10 years, this metric has ranged from a low of 0.90 to a high of 1.66. Based on the distribution chart, British American Tobacco Kenya ranks #11 out of 25 companies in the Tobacco Products industry, which is above the industry midpoint. Overall, British American Tobacco Kenya has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does British American Tobacco Kenya's Graham Number compare to PM and MO?
According to the Tobacco Products industry distribution chart, British American Tobacco Kenya ranks #11 out of 25 companies for Graham Number. This puts British American Tobacco Kenya in the upper half of its industry. The industry median Graham Number is 1.27. Historically, British American Tobacco Kenya's own Graham Number has ranged from 0.90 to 1.66 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Graham Number for a Tobacco Products company?
The median Graham Number among Tobacco Products companies is 1.27, based on 25 companies in the industry. Companies in the top quartile (top 25%) have a Graham Number significantly above this median, while those in the bottom quartile fall well below. However, Graham Number should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Graham Number mean?
A high Graham Number can signal that a stock is expensive relative to its fundamentals. The Graham Number values a company based on its per-share earnings and book value. View historical data on British American Tobacco Kenya and its competitors. For the Tobacco Products industry, the median Graham Number is 1.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. British American Tobacco Kenya's current Graham Number is KES427.53, which is 45871% above median its own 10-year median of 0.93. 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 Kenya stock overvalued right now?
Based on GuruFocus' analysis, British American Tobacco Kenya (NAI:BAT) is currently considered Significantly Overvalued. The stock's GF Value™ is KES354.61, compared to a current price of KES551.00 — trading 55.4% above its estimated fair value. The current Graham Number is KES427.53, which is 45871% above median its 10-year median of 0.93. British American Tobacco Kenya's overall GF Score™ is 68/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Graham Number calculated?
Graham Number is calculated from a company's financial statements. For British American Tobacco Kenya (NAI:BAT), the current Graham Number is KES427.53 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 Kenya (NAI:BAT) Overvalued in 2026?
Based on GuruFocus' analysis, British American Tobacco Kenya stock appears to be overvalued.
The current stock price of KES551.00 is trading 55.4% above its estimated GF Value™ of KES354.61.
GuruFocus considers British American Tobacco Kenya to be Significantly Overvalued.
Key valuation signals for NAI:BAT:
Graham Number: KES427.53 (45871% above median its 10-year median of 0.93)
GF Value™: KES354.61 vs. price of KES551.00 (55.4% above fair value)
No single metric tells the full story. See the NAI:BAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
British American Tobacco Kenya PLC multi-category consumer goods business that operates internationally. The business activities of the company involves activities ranging from the growing of tobacco leaf to the distribution and sale of finished tobacco products and nicotine products without tobacco. The product portfolio of the company comprises a range of high-quality and creative products, including cigarettes (combustible products), cut-rug tobacco (unprocessed tobacco), and potentially reduced-risk category of tobacco-free oral nicotine products.
68GF Score
Get the complete analysis for NAI:BAT
Graham Number is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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