British American TobaccoBTAFF -6.05%63 ROC (Joel Greenblatt) % is 241.10% as of Dec. 2025, which is 26% above its 10-year median of 191.56. GuruFocus rates BTAFF with a GF Scoreâ„¢ of 63/100 and a GF Valueâ„¢ of $36.99 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 47 Tobacco Products companies, British American Tobacco ranks better than 91.49% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. British American Tobacco's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 241.10%.
The historical rank and industry rank for British American Tobacco's ROC (Joel Greenblatt) % or its related term are showing as below:
BTAFF'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -321.14 Med: 191.56 Max: 579.47
Current: 271.55
During the past 13 years, British American Tobacco's highest ROC (Joel Greenblatt) % was 579.47%. The lowest was -321.14%. And the median was 191.56%.
BTAFF's ROC (Joel Greenblatt) % is ranked better than 91.49% of 47
companies
in the Tobacco Products industry
Industry Median: 42.96
vs BTAFF: 271.55
British American Tobacco's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
British American Tobacco (OTCPK:BTAFF) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
British American Tobacco ROC (Joel Greenblatt) % Related Terms
British American Tobacco ROC (Joel Greenblatt) % Historical Data
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The historical data trend for British American Tobacco's ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % Chart
BTAFF vs PM, MO, TPB: ROC (Joel Greenblatt) % Comparison
For the Tobacco subindustry, British American Tobacco's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where British American Tobacco's ROC (Joel Greenblatt) % falls into.
British American Tobacco ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT 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.
What does a ROC (Joel Greenblatt) % of 241.10% mean?
British American Tobacco (BTAFF) has a ROC (Joel Greenblatt) % of 241.10% as of Dec. 2025. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on British American Tobacco and its competitors. This is 26% above median its historical median of 191.56. According to the industry distribution chart, British American Tobacco ranks #4 out of 47 companies in the Tobacco Products industry, placing it in the top 8.5%.
Is British American Tobacco's ROC (Joel Greenblatt) % too high?
British American Tobacco's current ROC (Joel Greenblatt) % of 241.10% is 26% above median its 10-year median of 191.56. The Tobacco Products industry median ROC (Joel Greenblatt) % is 42.96. British American Tobacco's value of 241.10% is 461.2% above this industry median. Based on the distribution chart, British American Tobacco ranks #4 out of 47 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 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does British American Tobacco's ROC (Joel Greenblatt) % compare to PM and MO?
According to the Tobacco Products industry distribution chart, British American Tobacco ranks #4 out of 47 companies for ROC (Joel Greenblatt) %. This places British American Tobacco in the top 9% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 42.96. British American Tobacco's value of 241.10% is 461.2% above this benchmark. While the company's 10-year median is 191.56 vs. the industry median of 42.96, 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 ROC (Joel Greenblatt) % for a Tobacco Products company?
The median ROC (Joel Greenblatt) % among Tobacco Products companies is 42.96, based on 47 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. British American Tobacco's current ROC (Joel Greenblatt) % of 241.10% is 461.2% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on British American Tobacco and its competitors. For the Tobacco Products industry, the median ROC (Joel Greenblatt) % is 42.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. British American Tobacco's current ROC (Joel Greenblatt) % is 241.10%, which is 26% above median its own 10-year median of 191.56. 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 $36.99, compared to a current price of $59.19 — trading 60% above its estimated fair value. The current ROC (Joel Greenblatt) % is 241.10%, which is 26% above median its 10-year median of 191.56 and 461.2% above the Tobacco Products industry median of 42.96. British American Tobacco's overall GF Score™ is 63/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For British American Tobacco (BTAFF), the current ROC (Joel Greenblatt) % is 241.10% 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 $59.19 is trading 60% above its estimated GF Value™ of $36.99.
GuruFocus considers British American Tobacco to be Significantly Overvalued.
Key valuation signals for BTAFF:
ROC (Joel Greenblatt) %: 241.10% (26% above median its 10-year median of 191.56)
GF Value™: $36.99 vs. price of $59.19 (60% above fair value)
Industry Position: 461.2% above the Tobacco Products median (#4 of 47)
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.
63GF Score
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