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British American Tobacco KenyaNAI:BAT -0.17%69 Return-on-Tangible-Equity is 29.92% as of Dec. 2025, which is 25% below its 10-year median of 40.00. GuruFocus rates NAI:BAT with a GF Score™ of 69/100 and a GF Value™ of KES355.31 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 44 Tobacco Products companies, British American Tobacco Kenya ranks better than 56.82% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. British American Tobacco Kenya's annualized net income for the quarter that ended in Dec. 2025 was KES4,525 Mil. British American Tobacco Kenya's average shareholder tangible equity for the quarter that ended in Dec. 2025 was KES15,125 Mil. Therefore, British American Tobacco Kenya's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 29.92%.
The historical rank and industry rank for British American Tobacco Kenya's Return-on-Tangible-Equity or its related term are showing as below:
NAI:BAT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 28.04 Med: 40 Max: 72
Current: 34.22
During the past 7 years, British American Tobacco Kenya's highest Return-on-Tangible-Equity was 72.00%. The lowest was 28.04%. And the median was 40.00%.
NAI:BAT's Return-on-Tangible-Equity is ranked better than 56.82% of 44
companies
in the Tobacco Products industry
Industry Median: 25.395
vs NAI:BAT: 34.22
British American Tobacco Kenya (NAI:BAT) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
British American Tobacco Kenya Return-on-Tangible-Equity Related Terms
British American Tobacco Kenya Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart
NAI:BAT vs PM, MO, TPB: Return-on-Tangible-Equity Comparison
For the Tobacco subindustry, British American Tobacco Kenya's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco Kenya's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where British American Tobacco Kenya's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 29.92% mean?
British American Tobacco Kenya (NAI:BAT) has a Return-on-Tangible-Equity of 29.92% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on British American Tobacco Kenya and its competitors. This is 25% below median its historical median of 40.00. Over the past decade, British American Tobacco Kenya's Return-on-Tangible-Equity has ranged from 28.04 to 72.00. According to the industry distribution chart, British American Tobacco Kenya ranks #19 out of 44 companies in the Tobacco Products industry, placing it in the top 43.2%.
Is British American Tobacco Kenya's Return-on-Tangible-Equity too high?
British American Tobacco Kenya's current Return-on-Tangible-Equity of 29.92% is 25% below median its 10-year median of 40.00. Over the past 10 years, this metric has ranged from a low of 28.04 to a high of 72.00. The Tobacco Products industry median Return-on-Tangible-Equity is 25.40. British American Tobacco Kenya's value of 29.92% is 17.8% above this industry median. Based on the distribution chart, British American Tobacco Kenya ranks #19 out of 44 companies in the Tobacco Products industry, which is above the industry midpoint. Overall, British American Tobacco Kenya has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does British American Tobacco Kenya's Return-on-Tangible-Equity compare to PM and MO?
According to the Tobacco Products industry distribution chart, British American Tobacco Kenya ranks #19 out of 44 companies for Return-on-Tangible-Equity. This puts British American Tobacco Kenya in the upper half of its industry. The industry median Return-on-Tangible-Equity is 25.40. British American Tobacco Kenya's value of 29.92% is 17.8% above this benchmark. Historically, British American Tobacco Kenya's own Return-on-Tangible-Equity has ranged from 28.04 to 72.00 over the past decade. While the company's 10-year median is 40.00 vs. the industry median of 25.40, British American Tobacco Kenya 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-Equity for a Tobacco Products company?
The median Return-on-Tangible-Equity among Tobacco Products companies is 25.40, based on 44 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. British American Tobacco Kenya's current Return-on-Tangible-Equity of 29.92% is 17.8% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on British American Tobacco Kenya and its competitors. For the Tobacco Products industry, the median Return-on-Tangible-Equity is 25.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. British American Tobacco Kenya's current Return-on-Tangible-Equity is 29.92%, which is 25% below median its own 10-year median of 40.00. 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 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 KES355.31, compared to a current price of KES579.00 — trading 63% above its estimated fair value. The current Return-on-Tangible-Equity is 29.92%, which is 25% below median its 10-year median of 40.00 and 17.8% above the Tobacco Products industry median of 25.40. British American Tobacco Kenya's overall GF Score™ is 69/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For British American Tobacco Kenya (NAI:BAT), the current Return-on-Tangible-Equity is 29.92% 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 KES579.00 is trading 63% above its estimated GF Value™ of KES355.31.
GuruFocus considers British American Tobacco Kenya to be Significantly Overvalued.
Key valuation signals for NAI:BAT:
Return-on-Tangible-Equity: 29.92% (25% below median its 10-year median of 40.00)
GF Value™: KES355.31 vs. price of KES579.00 (63% above fair value)
Industry Position: 17.8% above the Tobacco Products median (#19 of 44)
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 Business Description
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.
69GF Score
Get the complete analysis for NAI:BAT
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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