Latest Ratios: P/E Ratio 13.3x · EV/EBITDA 11.0x · ROE 15.8%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $133.9B | $124.5B | $80.8B | $65.3B | $90.5B | $84.7B | $84.9B | $96.2B | $72.2B | $151.7B | $127.6B |
| Enterprise Value | $175.5B | $155.8B | $112.5B | $102.7B | $130.2B | $121.6B | $125.7B | $139.0B | $117.1B | $197.9B | $144.9B |
| P/E Ratio → | 13.29 | 16.22 | 26.71 | — | 13.69 | 12.64 | 13.44 | 17.05 | 11.98 | 3.66 | 22.63 |
| P/S Ratio | 3.92 | 4.86 | 3.12 | 2.39 | 3.27 | 3.30 | 3.29 | 3.72 | 2.95 | 7.75 | 9.03 |
| P/B Ratio | 2.12 | 2.59 | 1.62 | 1.23 | 1.20 | 1.26 | 1.35 | 1.50 | 1.10 | 2.49 | 15.18 |
| P/FCF | 17.35 | 21.50 | 8.49 | 6.37 | 9.17 | 9.22 | 9.15 | 11.54 | 7.57 | 33.30 | 31.71 |
| P/OCF | 15.84 | 19.63 | 7.98 | 6.09 | 8.71 | 8.72 | 8.68 | 10.69 | 7.01 | 28.37 | 27.68 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.08 | 4.35 | 3.76 | 4.71 | 4.73 | 4.88 | 5.37 | 4.78 | 10.11 | 10.25 |
| EV / EBITDA | 10.98 | 12.98 | 19.27 | — | 11.58 | 10.87 | 11.65 | 12.25 | 10.62 | 24.78 | 24.98 |
| EV / EBIT | 13.18 | 15.96 | 24.26 | 8.12 | 11.32 | 11.87 | 11.49 | 15.22 | 12.27 | 6.66 | 30.87 |
| EV / FCF | — | 26.90 | 11.82 | 10.01 | 13.19 | 13.23 | 13.56 | 16.68 | 12.27 | 43.43 | 36.00 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 83.5% | 83.5% | 82.9% | 82.1% | 82.6% | 82.1% | 82.7% | 82.8% | 81.2% | 74.3% | 73.6% |
| Operating Margin | 39.0% | 39.0% | 10.6% | -57.7% | 38.1% | 39.8% | 38.6% | 40.2% | 41.0% | 36.6% | 37.2% |
| Net Profit Margin | 30.3% | 30.3% | 11.9% | -52.7% | 24.1% | 26.5% | 24.8% | 22.0% | 24.6% | 191.8% | 32.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 15.8% | 15.8% | 6.0% | -22.3% | 9.3% | 10.4% | 10.1% | 8.8% | 9.5% | 108.1% | 69.2% |
| ROA | 6.8% | 6.8% | 2.6% | -10.6% | 4.6% | 4.9% | 4.6% | 4.0% | 4.2% | 41.5% | 13.0% |
| ROIC | 9.3% | 9.3% | 2.4% | -11.5% | 7.2% | 7.4% | 7.1% | 7.2% | 6.9% | 8.1% | 17.2% |
| ROCE | 10.3% | 10.3% | 2.7% | -13.2% | 8.2% | 8.4% | 8.2% | 8.3% | 7.9% | 9.3% | 20.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.73 | 0.73 | 0.74 | 0.75 | 0.57 | 0.59 | 0.70 | 0.71 | 0.72 | 0.81 | 2.32 |
| Debt / EBITDA | 2.92 | 2.92 | 6.33 | — | 3.84 | 3.55 | 4.07 | 4.00 | 4.31 | 6.19 | 3.36 |
| Net Debt / Equity | — | 0.65 | 0.63 | 0.71 | 0.52 | 0.55 | 0.65 | 0.67 | 0.68 | 0.76 | 2.06 |
| Net Debt / EBITDA | 2.60 | 2.60 | 5.42 | — | 3.53 | 3.30 | 3.78 | 3.78 | 4.07 | 5.78 | 2.98 |
| Debt / FCF | — | 5.40 | 3.33 | 3.64 | 4.02 | 4.01 | 4.40 | 5.14 | 4.71 | 10.13 | 4.30 |
| Interest Coverage | 5.06 | 5.06 | 4.22 | 6.70 | 6.92 | 6.87 | 6.13 | 5.04 | 6.43 | 24.81 | 6.89 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.87 | 0.87 | 0.76 | 0.91 | 0.86 | 0.85 | 0.88 | 0.71 | 0.78 | 0.90 | 1.04 |
| Quick Ratio | 0.57 | 0.57 | 0.52 | 0.59 | 0.55 | 0.50 | 0.49 | 0.38 | 0.41 | 0.52 | 0.55 |
| Cash Ratio | 0.26 | 0.26 | 0.31 | 0.19 | 0.23 | 0.22 | 0.22 | 0.14 | 0.17 | 0.22 | 0.19 |
| Asset Turnover | — | 0.23 | 0.22 | 0.23 | 0.18 | 0.19 | 0.19 | 0.18 | 0.17 | 0.14 | 0.36 |
| Inventory Turnover | 0.96 | 0.96 | 0.96 | 0.99 | 0.85 | 0.87 | 0.74 | 0.73 | 0.76 | 0.86 | 0.64 |
| Days Sales Outstanding | — | 54.19 | 40.29 | 50.74 | 59.60 | 57.81 | 53.81 | 47.52 | 42.74 | 61.68 | 69.64 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 5.0% | 4.1% | 6.5% | 7.7% | 5.4% | 5.8% | 5.6% | 4.8% | 6.0% | 2.3% | 2.3% |
| Payout Ratio | 66.0% | 66.0% | 169.9% | — | 73.7% | 72.1% | 74.1% | 80.6% | 72.1% | 9.2% | 62.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.5% | 6.2% | 3.7% | — | 7.3% | 7.9% | 7.4% | 5.9% | 8.3% | 27.3% | 4.4% |
| FCF Yield | 5.8% | 4.7% | 11.8% | 15.7% | 10.9% | 10.8% | 10.9% | 8.7% | 13.2% | 3.0% | 3.2% |
| Buyback Yield | 1.1% | 0.9% | 1.0% | 0.2% | 2.3% | 0.1% | 0.0% | 0.1% | 0.2% | 0.1% | 0.1% |
| Total Shareholder Yield | 6.2% | 5.0% | 7.4% | 7.9% | 7.7% | 5.9% | 5.6% | 4.9% | 6.2% | 2.4% | 2.3% |
| Shares Outstanding | — | $2.2B | $2.2B | $2.2B | $2.3B | $2.3B | $2.3B | $2.3B | $2.3B | $2.3B | $2.3B |
US combustible volume decline
According to current market data, BTI trades at a 13.62x trailing P/E, a significant discount to peers like Philip Morris International, which suggests investors are pricing in higher regulatory risk and the structural challenges associated with the company's heavy reliance on the US combustible cigarette market.
The forward P/E of 17.60 implies that the market expects a recovery in earnings quality, yet the PEG ratio of 2.98 suggests that this valuation may be expensive relative to the company's current lack of top-line growth. Investors should monitor whether the current valuation discount is a permanent reflection of the US regulatory environment or a temporary mispricing of the company's potential to pivot toward non-combustible categories.
Based on reported financial figures, BTI's ROIC has struggled to maintain positive momentum, recently dipping to 4.7% in 2025Q4, a trend that highlights the difficulty of compounding capital returns while simultaneously absorbing massive non-cash impairment charges related to legacy US combustible brand assets.
The volatility in ROIC, which plummeted to negative 16.2% in 2023Q4, indicates that the company's historical capital allocation decisions, particularly the Reynolds American acquisition, have not yet delivered the expected long-term value. This suggests that future returns on capital will remain under pressure until the company can demonstrate a consistent ability to generate profitable growth from its newer, non-combustible product portfolio.
As indicated by the latest quarterly data, BTI's cash conversion cycle remains deeply negative at -140 days, a figure that appears to be driven by an exceptionally long days payable outstanding of 357 days, suggesting significant leverage over suppliers rather than operational efficiency in inventory management.
While the negative CCC is a hallmark of the tobacco industry's unique business model, the high days inventory outstanding of 192 days warrants further investigation, as it may indicate potential over-stocking or trade loading ahead of price hikes. This reliance on extended payment terms to manage liquidity may become a vulnerability if supplier relationships or credit terms face unexpected tightening.
According to recent SEC filings, BTI's debt-to-EBITDA ratio of 5.95 in 2025Q4 highlights a highly leveraged balance sheet that leaves little room for error, especially when compared to the more conservative capital structures typically seen in the broader consumer defensive sector.
The interest coverage ratio of 6.56 suggests that while the company can currently service its debt, the margin of safety is thin given the secular decline in core combustible volumes. Investors should monitor whether management can successfully deleverage the balance sheet without sacrificing the R&D spending necessary to maintain competitiveness in the vapor and heated tobacco markets.
The most commonly misapplied ratio for BTI is the traditional P/E multiple, which fails to account for the massive non-cash impairment charges that frequently distort net income and obscure the company's underlying cash-generating ability in its core tobacco operations.
Analysts should instead focus on P/FCF or EV/EBITDA, as these metrics provide a clearer view of the company's ability to fund its dividend and transition strategy without the noise of accounting write-downs. Relying on P/E in this context may lead to an inaccurate assessment of the company's true valuation, as it ignores the significant divergence between accounting earnings and actual cash flow generation.
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Quick answers to the most common questions about buying BTI stock.
British American Tobacco p.l.c.'s current P/E ratio is 13.3x. The historical average is 23.3x. This places it at the 14th percentile of its historical range.
British American Tobacco p.l.c.'s current EV/EBITDA is 11.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.4x.
British American Tobacco p.l.c.'s return on equity (ROE) is 15.8%. The historical average is 37.7%.
Based on historical data, British American Tobacco p.l.c. is trading at a P/E of 13.3x. This is at the 14th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
British American Tobacco p.l.c.'s current dividend yield is 5.02% with a payout ratio of 66.0%.
British American Tobacco p.l.c. has 83.5% gross margin and 39.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
British American Tobacco p.l.c.'s Debt/EBITDA ratio is 2.9x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.