British American Tobacco (CHIX:BATSL) GF Value Rank: 3 (As of Jul. 14, 2026) — 50% Below Median

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Director of Data and Quant Analytics at GuruFocus
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Founder & CEO of GuruFocus
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.

CHIX:BATSL British American Tobacco PLC CHIX:BATSL
71 GF Score
Price £43.74
GF Value £27.87
Valuation Significantly Overvalued
! 4 Warning Signs
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What is British American Tobacco GF Value Rank?

British American Tobacco CHIX:BATSL -1.77% 71 GF Value Rank is 3 as of Jul. 14, 2026, which is 50% below its 10-year median of 6.00. GuruFocus rates CHIX:BATSL with a GF Score™ of 71/100 and a GF Value™ of £27.87 (Significantly Overvalued). The stock has 4 warning signs investors should review.

British American Tobacco has the GF Value Rank of 3.

GF Value Rank evaluates the exclusive GuruFocus valuation and performance of a stock, rated on a scale from 1 to 10. It is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

A higher score indicates a stock with a relatively low valuation and substantial potential for outperformance. Conversely, a lower score often reflects stocks that are either highly overvalued or deeply undervalued, both of which tend to underperform.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

British American Tobacco GF Value Rank Related Terms

CHIX:BATSL vs PM, MO, TPB: GF Value Rank Comparison

For the Tobacco subindustry, British American Tobacco's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank vs Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco's GF Value Rank distribution charts can be found below:

* The bar in red indicates where British American Tobacco's GF Value Rank falls into.


CHIX:BATSL
71GF Score
British American Tobacco PLC CHIX:BATSL
GF Value Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about GF Value Rank →
What does a GF Value Rank of 3 mean?
British American Tobacco (CHIX:BATSL) has a GF Value Rank of 3 as of Jul. 14, 2026. GF Value Rank is given based on historical multiples along with past returns, growth and future estimates of the business' performance. View historical data on British American Tobacco and its competitors. This is 50% below median its historical median of 6.00. Over the past decade, British American Tobacco's GF Value Rank has ranged from 3.00 to 10.00.
Is British American Tobacco's GF Value Rank too high?
British American Tobacco's current GF Value Rank of 3 is 50% below median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 10.00. 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 GF Value Rank compare to PM and MO?
British American Tobacco's GF Value Rank of 3 can be compared against companies in the Tobacco Products industry. Historically, British American Tobacco's own GF Value Rank has ranged from 3.00 to 10.00 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 GF Value Rank for a Tobacco Products company?
A good GF Value Rank depends on the Tobacco Products industry context. However, GF Value Rank 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 GF Value Rank mean?
A high GF Value Rank can signal that a stock is expensive relative to its fundamentals. GF Value Rank is given based on historical multiples along with past returns, growth and future estimates of the business' performance. View historical data on British American Tobacco and its competitors. British American Tobacco's current GF Value Rank is 3, which is 50% below median its own 10-year median of 6.00. 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 GF Value Rank is 3, which is 50% below median its 10-year median of 6.00. 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 GF Value Rank calculated?
GF Value Rank is calculated from a company's financial statements. For British American Tobacco (CHIX:BATSL), the current GF Value Rank is 3 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:

  • GF Value Rank: 3 (50% below median its 10-year median of 6.00)
  • GF Value™: £27.87 vs. price of £43.74 (56.9% above fair value)
  • GF Score™: 71/100 with 4 warning signs

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.

British American Tobacco Business Description

Address Globe House, 4 Temple Place, London, GBR, WC2R 2PG
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

GF Value Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£43.74
Price
£27.87
GF Value