British American TobaccoBTAFF 67 ROE % is 13.63% as of Dec. 2025, which is 39% above its 10-year median of 9.84. 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. Among 45 Tobacco Products companies, British American Tobacco ranks worse than 51.11% on this metric.
The historical rank and industry rank for British American Tobacco's ROE % or its related term are showing as below:
BTAFF'
s ROE % Range Over the Past 10 Years
Min: -22.46 Med: 9.84 Max: 108.75
Current: 16.13
During the past 13 years, British American Tobacco's highest ROE % was 108.75%. The lowest was -22.46%. And the median was 9.84%.
BTAFF's ROE % is ranked worse than 51.11% of 45
companies
in the Tobacco Products industry
Industry Median: 16.13
vs BTAFF: 16.13
British American Tobacco (OTCPK:BTAFF) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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.
For the Tobacco subindustry, British American Tobacco's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco's ROE % distribution charts can be found below:
* The bar in red indicates where British American Tobacco's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
British American Tobacco (BTAFF) has a ROE % of 13.63% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on British American Tobacco and its competitors. This is 39% above median its historical median of 9.84. According to the industry distribution chart, British American Tobacco ranks #23 out of 45 companies in the Tobacco Products industry, placing it in the top 51.1%.
Is British American Tobacco's ROE % too high?
British American Tobacco's current ROE % of 13.63% is 39% above median its 10-year median of 9.84. The Tobacco Products industry median ROE % is 16.13. British American Tobacco's value of 13.63% is 15.5% below this industry median. Based on the distribution chart, British American Tobacco ranks #23 out of 45 companies in the Tobacco Products industry, which is below the industry midpoint. 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 ROE % compare to PM and MO?
According to the Tobacco Products industry distribution chart, British American Tobacco ranks #23 out of 45 companies for ROE %. This places British American Tobacco in the lower half of its industry. The industry median ROE % is 16.13. British American Tobacco's value of 13.63% is 15.5% below this benchmark. While the company's 10-year median is 9.84 vs. the industry median of 16.13, British American Tobacco has consistently been below 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 ROE % for a Tobacco Products company?
The median ROE % among Tobacco Products companies is 16.13, based on 45 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. British American Tobacco's current ROE % of 13.63% is 15.5% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on British American Tobacco and its competitors. For the Tobacco Products industry, the median ROE % is 16.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. British American Tobacco's current ROE % is 13.63%, which is 39% above median its own 10-year median of 9.84. 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 ROE % is 13.63%, which is 39% above median its 10-year median of 9.84 and 15.5% below the Tobacco Products industry median of 16.13. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For British American Tobacco (BTAFF), the current ROE % is 13.63% 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:
ROE %: 13.63% (39% above median its 10-year median of 9.84)
GF Value™: $38.65 vs. price of $61.62 (59.4% above fair value)
Industry Position: 15.5% below the Tobacco Products median (#23 of 45)
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.
67GF Score
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