BTI
ACCE-researchedOverview
ACCE thesis
British American Tobacco manufactures and distributes cigarettes, heated tobacco products, and oral nicotine across 180 markets, with flagship brands including Lucky Strike, Dunhill, and Newport. The company controls the second-largest global tobacco market share and operates in a regulated oligopoly where new entrant barriers remain virtually insurmountable. BTI's New Categories division, encompassing heated tobacco and vaping products, generated £2.9 billion in 2023 revenue and targets 50 million consumers by 2030 as smoking rates decline in developed markets. The stock trades at 12.5x forward earnings while generating a 9.1% dividend yield, creating an income vehicle that has increased payouts for 24 consecutive years despite volume headwinds. Management expects to reach 30% New Categories revenue mix by 2030, transforming BTI from a declining cigarette business into a diversified reduced-risk product company.
- moderateNear-zero revenue growthRev YoY only +0.1%, reflecting secular volume decline in combustibles; 5y CAGR of 4.5% masks recent stagnation.
- moderateElevated absolute debt loadDebt/Equity 0.72 on a $129.6B market cap implies substantial gross debt; FCF of $5.8B limits deleveraging speed.
- moderateLow institutional ownershipOnly 15.4% institutional ownership for a $129B company is unusually thin, suggesting limited large-cap fund participation or ESG exclusions.
Walk me through this stock
Plain-English pros, cons, and what to watch. Pro feature.
Price
Valuation
INVESTORSix independent models converge on one confidence-weighted fair value, with full methodology and editable assumptions.
- +All six models: DCF, P/E and EV/EBITDA comps, Graham, dividend discount, residual income
- +Scenario bands, sensitivity tornado, and the 5-year historical valuation range
- +Editable DCF workbench with saved scenarios
Quality
INVESTORThe full quality picture: conviction breakdown, earnings quality, score history, and backtested returns.
- +Conviction score breakdown and earnings-quality grade
- +Growth / value / quality / momentum component scores
- +90-day score history and score-threshold backtests
Analysts
Wall Street consensus
The full analyst picture: the price-target distribution against the current price, forward consensus estimates, and how ACCE's own models compare.
- +Price-target low / average / high vs the current price, with implied upside
- +Forward revenue and EPS consensus by fiscal year
- +ACCE fair-value models lined up against the Street
Smart Money
PROFollow the institutions: 13F position changes, insider trades, and active 13D activist filings.
- +Quarter-over-quarter institutional position changes
- +Recent open-market insider transactions
- +Active 13D activist filings and top holders
Compare
Where it sits vs peers
Algorithmic peers (6)
| Ticker | Company | Mcap | P/E | ROE | D/E | Yield | Quality | |
|---|---|---|---|---|---|---|---|---|
| BATS.L | British American Tobacco | $120.5B | 14.4 | 13.4% | 0.72 | 5.9% | - | Compare |
| MO | Altria Group Inc. | $116.1B | 14.6 | 0.0% | -7.34 | 6.1% | - | Compare |
| PM | Philip Morris International Inc Common Stock | $294.0B | 25.9 | 0.0% | -4.89 | 3.1% | - | Compare |
| ITC.NS | ITC | $34.3B | 16.6 | 29.3% | 3.29 | 6.1% | - | Compare |
| IMB.L | Imperial Brands | $25.1B | 11.7 | 37.1% | 1.99 | 6.6% | - | Compare |
| TPB | Turning Point Brands Inc. Common Stock | $1.3B | 29.6 | 17.6% | 0.84 | 0.4% | - | Compare |
Sector report card
Where BTI ranks against its sector peers on each metric.
News and Record
Press releases mentioning this company
- TMX Newsfile•Aug 20, 2026ASOS and Novotique Finance Chief Tom Wills Joins Modo25 and ASK BOSCO(R) as Chief Financial Officer
- Business Wire•Aug 12, 2026ITC Infotech Strengthens Strategic Tech Partnership With British American Tobacco (BAT) in New Multi-year Mandate
- PR Newswire•Apr 28, 2026Ahead of Miami Grand Prix, Campaign for Tobacco-Free Kids Launches Ad Campaign Urging Formula 1 to End All Tobacco Sponsorships
Ask anything, Pro feature
Ask questions about this stock in plain language. Answered from company fundamentals + recent valuations.