BTAFF (British American Tobacco) ROCE %: 11.02% (As of Dec. 2025)


BTAFF British American Tobacco PLC BTAFF
67 GF Score
Price $61.62
GF Value $38.65
Valuation Significantly Overvalued
! 6 Warning Signs
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What is British American Tobacco ROCE %?

British American Tobacco BTAFF +1.10% 67 ROCE % is 11.02% as of Dec. 2025. GuruFocus rates BTAFF with a GF Score™ of 67/100 and a GF Value™ of $38.65 (Significantly Overvalued). The stock has 6 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. British American Tobacco's annualized ROCE % for the quarter that ended in Dec. 2025 was 11.02%.

British American Tobacco  (OTCPK:BTAFF) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

British American Tobacco ROCE % Related Terms

British American Tobacco ROCE % Historical Data

* Premium members only.

The historical data trend for British American Tobacco's ROCE % 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 ROCE % Chart

British American Tobacco Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.67 8.16 -12.99 5.27 12.45

British American Tobacco Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -36.80 11.59 -1.08 13.95 11.02
BTAFF
67GF Score
British American Tobacco PLC BTAFF
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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British American Tobacco ROCE % Calculation

British American Tobacco's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=15777.778/( ( (150314.791 - 23695.322) + (146305.221 - 19443.106) )/ 2 )
=15777.778/( (126619.469+126862.115)/ 2 )
=15777.778/126740.792
=12.45 %

British American Tobacco's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=14037.484/( ( (149560.38 - 21704.206) + (146305.221 - 19443.106) )/ 2 )
=14037.484/( ( 127856.174 + 126862.115 )/ 2 )
=14037.484/127359.1445
=11.02 %

(1) 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 11.02% mean?
British American Tobacco (BTAFF) has a ROCE % of 11.02% as of Dec. 2025.
Is British American Tobacco's ROCE % too high?
British American Tobacco's current ROCE % is 11.02%. The Tobacco Products industry median ROCE % is 17.46. British American Tobacco's value of 11.02% is 36.9% below this industry median. Overall, British American Tobacco has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does British American Tobacco's ROCE % compare to PM and MO?
British American Tobacco's ROCE % of 11.02% can be compared against companies in the Tobacco Products industry. The industry median ROCE % is 17.46. British American Tobacco's value of 11.02% is 36.9% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Tobacco Products company?
The median ROCE % among Tobacco Products companies is 17.46, based on 46 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. British American Tobacco's current ROCE % of 11.02% is 36.9% below 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Tobacco Products industry, the median ROCE % is 17.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. British American Tobacco's current ROCE % is 11.02%. 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 $38.65, compared to a current price of $61.62 — trading 59.4% above its estimated fair value. The current ROCE % is 11.02% and 36.9% below the Tobacco Products industry median of 17.46. British American Tobacco's overall GF Score™ is 67/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For British American Tobacco (BTAFF), the current ROCE % is 11.02% 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 $61.62 is trading 59.4% above its estimated GF Value™ of $38.65. GuruFocus considers British American Tobacco to be Significantly Overvalued.

Key valuation signals for BTAFF:

  • ROCE %: 11.02%
  • GF Value™: $38.65 vs. price of $61.62 (59.4% above fair value)
  • GF Score™: 67/100 with 6 warning signs
  • Industry Position: 36.9% below the Tobacco Products median

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.

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.
67GF Score

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

$61.62
Price
$38.65
GF Value