British American Tobacco (British American Tobacco) GF Value Rank : 9 (As of Apr. 27, 2024)

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What is British American Tobacco GF Value Rank?

British American Tobacco has the GF Value Rank of 9.

The GF Value Rank 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.

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

Competitive Comparison of British American Tobacco's GF Value Rank

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's GF Value Rank Distribution in the 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.

British American Tobacco GF Value Rank Related Terms

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British American Tobacco (British American Tobacco) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Tobacco Products » British American Tobacco PLC (NYSE:BTI) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

BTI:South Africa BTAFF:USA BATSl:UK BATS:UK BMTA:Germany BMT:Germany BMT:Germany BMT:Germany BMTA:Germany BMT:Germany B1TI34:Brazil

Address

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

Website

https://www.bat.com

Following the acquisition of Reynolds American, British American Tobacco is neck-and-neck with Philip Morris International to be the largest listed Global tobacco company--slightly larger than PMI on net revenue, but slightly smaller on total tobacco volume. British American's Global Drive Brands are Dunhill, Kent, Pall Mall, Lucky Strike, and Rothmans, and it also owns Newport and Camel in the U.S. The firm also sells vapor e-cigarettes, primarily its Vuse brand, heated tobacco, with Glo, as well Velo modern oral tobacco products. The company holds 29% of ITC Limited, the leading Indian cigarette-maker.