British American TobaccoBTAFF -0.31%67 Net Margin % is 24.02% as of Dec. 2025, which is 3% below its 10-year median of 24.73. 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 89.58% on this metric.
The historical rank and industry rank for British American Tobacco's Net Margin % or its related term are showing as below:
BTAFF'
s Net Margin % Range Over the Past 10 Years
Min: -52.66 Med: 24.73 Max: 191.6
Current: 30.32
BTAFF's Net Margin % is ranked better than 89.58% of 48
companies
in the Tobacco Products industry
Industry Median: 7.245
vs BTAFF: 30.32
British American Tobacco (OTCPK:BTAFF) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
British American Tobacco Net Margin % Related Terms
British American Tobacco Net Margin % 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 Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco's Net Margin % distribution charts can be found below:
* The bar in red indicates where British American Tobacco's Net 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 Net Margin % of 24.02% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on British American Tobacco and its competitors. This is near median its historical median of 24.73. According to the industry distribution chart, British American Tobacco ranks #5 out of 48 companies in the Tobacco Products industry, placing it in the top 10.4%.
Is British American Tobacco's Net Margin % too high?
British American Tobacco's current Net Margin % of 24.02% is near median its 10-year median of 24.73. The Tobacco Products industry median Net Margin % is 7.25. British American Tobacco's value of 24.02% is 231.5% above this industry median. Based on the distribution chart, British American Tobacco ranks #5 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 Net Margin % compare to PM and MO?
According to the Tobacco Products industry distribution chart, British American Tobacco ranks #5 out of 48 companies for Net Margin %. This places British American Tobacco in the top 10% of its industry — outperforming the majority of peers. The industry median Net Margin % is 7.25. British American Tobacco's value of 24.02% is 231.5% above this benchmark. While the company's 10-year median is 24.73 vs. the industry median of 7.25, 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 Net Margin % for a Tobacco Products company?
The median Net Margin % among Tobacco Products companies is 7.25, based on 48 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. British American Tobacco's current Net Margin % of 24.02% is 231.5% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on British American Tobacco and its competitors. For the Tobacco Products industry, the median Net Margin % is 7.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. British American Tobacco's current Net Margin % is 24.02%, which is near median its own 10-year median of 24.73. 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 $61.43 — trading 58.9% above its estimated fair value. The current Net Margin % is 24.02%, which is near median its 10-year median of 24.73 and 231.5% above the Tobacco Products industry median of 7.25. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For British American Tobacco (BTAFF), the current Net Margin % is 24.02% 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 $61.43 is trading 58.9% above its estimated GF Value™ of $38.65.
GuruFocus considers British American Tobacco to be Significantly Overvalued.
Key valuation signals for BTAFF:
Net Margin %: 24.02% (near median its 10-year median of 24.73)
GF Value™: $38.65 vs. price of $61.43 (58.9% above fair value)
Industry Position: 231.5% above the Tobacco Products median (#5 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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