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British American TobaccoCHIX:BATSL -0.39%71 5-Year Yield-on-Cost % is 6.26 as of Jul. 15, 2026, which is 18% below its 10-year median of 7.68. 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 32 Tobacco Products companies, British American Tobacco ranks better than 59.37% on this metric.
The historical rank and industry rank for British American Tobacco's 5-Year Yield-on-Cost % or its related term are showing as below:
CHIX:BATSl'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 3.46 Med: 7.68 Max: 11.65
Current: 6.26
During the past 13 years, British American Tobacco's highest Yield on Cost was 11.65. The lowest was 3.46. And the median was 7.68.
CHIX:BATSl's 5-Year Yield-on-Cost % is ranked better than 59.37% of 32
companies
in the Tobacco Products industry
Industry Median: 5.94
vs CHIX:BATSl: 6.26
British American Tobacco (CHIX:BATSl) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
British American Tobacco 5-Year Yield-on-Cost % Related Terms
CHIX:BATSL vs PM, MO, TPB: 5-Year Yield-on-Cost % Comparison
For the Tobacco subindustry, British American Tobacco's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where British American Tobacco's 5-Year Yield-on-Cost % falls into.
British American Tobacco 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
British American Tobacco (CHIX:BATSL) has a 5-Year Yield-on-Cost % of 6.26 as of Jul. 15, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on British American Tobacco and its competitors. This is 18% below median its historical median of 7.68. Over the past decade, British American Tobacco's 5-Year Yield-on-Cost % has ranged from 3.46 to 11.65. According to the industry distribution chart, British American Tobacco ranks #13 out of 32 companies in the Tobacco Products industry, placing it in the top 40.6%.
Is British American Tobacco's 5-Year Yield-on-Cost % too high?
British American Tobacco's current 5-Year Yield-on-Cost % of 6.26 is 18% below median its 10-year median of 7.68. Over the past 10 years, this metric has ranged from a low of 3.46 to a high of 11.65. The Tobacco Products industry median 5-Year Yield-on-Cost % is 5.94. British American Tobacco's value of 6.26 is 5.4% above this industry median. Based on the distribution chart, British American Tobacco ranks #13 out of 32 companies in the Tobacco Products industry, which is above the industry midpoint. 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 5-Year Yield-on-Cost % compare to PM and MO?
According to the Tobacco Products industry distribution chart, British American Tobacco ranks #13 out of 32 companies for 5-Year Yield-on-Cost %. This puts British American Tobacco in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 5.94. British American Tobacco's value of 6.26 is 5.4% above this benchmark. Historically, British American Tobacco's own 5-Year Yield-on-Cost % has ranged from 3.46 to 11.65 over the past decade. While the company's 10-year median is 7.68 vs. the industry median of 5.94, 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 5-Year Yield-on-Cost % for a Tobacco Products company?
The median 5-Year Yield-on-Cost % among Tobacco Products companies is 5.94, based on 32 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. British American Tobacco's current 5-Year Yield-on-Cost % of 6.26 is 5.4% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on British American Tobacco and its competitors. For the Tobacco Products industry, the median 5-Year Yield-on-Cost % is 5.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. British American Tobacco's current 5-Year Yield-on-Cost % is 6.26, which is 18% below median its own 10-year median of 7.68. 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 5-Year Yield-on-Cost % is 6.26, which is 18% below median its 10-year median of 7.68 and 5.4% above the Tobacco Products industry median of 5.94. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For British American Tobacco (CHIX:BATSL), the current 5-Year Yield-on-Cost % is 6.26 as of Jul. 15, 2026. 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:
5-Year Yield-on-Cost %: 6.26 (18% below median its 10-year median of 7.68)
GF Value™: £27.87 vs. price of £43.74 (56.9% above fair value)
Industry Position: 5.4% above the Tobacco Products median (#13 of 32)
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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