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British American TobaccoCHIX:BATSL -0.39%71 Return-on-Tangible-Asset is 28.06% as of Dec. 2025, which is 2% above its 10-year median of 27.59. GuruFocus rates CHIX:BATSL with a GF Score™ of 71/100 and a GF Value™ of £27.87 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 49 Tobacco Products companies, British American Tobacco ranks better than 83.67% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. British American Tobacco's annualizedNet Income for the quarter that ended in Dec. 2025 was £6,504 Mil. British American Tobacco's average total tangible assets for the quarter that ended in Dec. 2025 was £23,180 Mil. Therefore, British American Tobacco's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 28.06%.
The historical rank and industry rank for British American Tobacco's Return-on-Tangible-Asset or its related term are showing as below:
CHIX:BATSl'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -60.33 Med: 27.59 Max: 147.22
Current: 32.81
During the past 13 years, British American Tobacco's highest Return-on-Tangible-Asset was 147.22%. The lowest was -60.33%. And the median was 27.59%.
CHIX:BATSl's Return-on-Tangible-Asset is ranked better than 83.67% of 49
companies
in the Tobacco Products industry
Industry Median: 10.52
vs CHIX:BATSl: 32.81
British American Tobacco (CHIX:BATSl) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
British American Tobacco Return-on-Tangible-Asset Related Terms
British American Tobacco Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for British American Tobacco's Return-on-Tangible-Asset can be seen below:
* 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 Return-on-Tangible-Asset Chart
CHIX:BATSL vs PM, MO, TPB: Return-on-Tangible-Asset Comparison
For the Tobacco subindustry, British American Tobacco's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where British American Tobacco's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
What does a Return-on-Tangible-Asset of 28.06% mean?
British American Tobacco (CHIX:BATSL) has a Return-on-Tangible-Asset of 28.06% as of Dec. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on British American Tobacco and its competitors. This is near median its historical median of 27.59. According to the industry distribution chart, British American Tobacco ranks #8 out of 49 companies in the Tobacco Products industry, placing it in the top 16.3%.
Is British American Tobacco's Return-on-Tangible-Asset too high?
British American Tobacco's current Return-on-Tangible-Asset of 28.06% is near median its 10-year median of 27.59. The Tobacco Products industry median Return-on-Tangible-Asset is 10.52. British American Tobacco's value of 28.06% is 166.7% above this industry median. Based on the distribution chart, British American Tobacco ranks #8 out of 49 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 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does British American Tobacco's Return-on-Tangible-Asset compare to PM and MO?
According to the Tobacco Products industry distribution chart, British American Tobacco ranks #8 out of 49 companies for Return-on-Tangible-Asset. This places British American Tobacco in the top 16% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 10.52. British American Tobacco's value of 28.06% is 166.7% above this benchmark. While the company's 10-year median is 27.59 vs. the industry median of 10.52, 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 Return-on-Tangible-Asset for a Tobacco Products company?
The median Return-on-Tangible-Asset among Tobacco Products companies is 10.52, based on 49 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. British American Tobacco's current Return-on-Tangible-Asset of 28.06% is 166.7% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on British American Tobacco and its competitors. For the Tobacco Products industry, the median Return-on-Tangible-Asset is 10.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. British American Tobacco's current Return-on-Tangible-Asset is 28.06%, which is near median its own 10-year median of 27.59. 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 Return-on-Tangible-Asset is 28.06%, which is near median its 10-year median of 27.59 and 166.7% above the Tobacco Products industry median of 10.52. British American Tobacco's overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For British American Tobacco (CHIX:BATSL), the current Return-on-Tangible-Asset is 28.06% 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 (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:
Return-on-Tangible-Asset: 28.06% (near median its 10-year median of 27.59)
GF Value™: £27.87 vs. price of £43.74 (56.9% above fair value)
Industry Position: 166.7% above the Tobacco Products median (#8 of 49)
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
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Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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