Fundamental analysis BTI (British American Tobacco p.l.c.)

Updated on 07/20/2026

We analyzed British American Tobacco p.l.c. stock against the 10 quality criteria of Lubin Investment. The company gets a quality score of 6/10, meaning medium quality, and a P/FCF valuation multiple of 23.3×.

Sector: Tobacco. Listing: US. Current price: 59.72 USD.

Lubin scoring methodology

British American Tobacco p.l.c. (BTI)'s score is calculated automatically from 10 objective financial criteria, with no human intervention or opinion. Each criterion is validated (YES / PARTIAL / NO) based on thresholds drawn from the financial literature (Warren Buffett, Bettin-Mauboussin, Aswath Damodaran). The final score is the sum of validations.

The 10 quantitative criteria analyzed

1. Profitable: positive net margin
2. Growing revenue: revenue growing > 10%/year over 5 years
3. Growing earnings per share: FCF per share adjusted for stock-based compensation, > 10%/year over 5 years
4. Share count under control: stable or declining (net buybacks = value creation for shareholders)
5. Cash profitability: free cash flow margin > 10% of revenue
6. Expanding margins: operating margin widens over 5 years (operating leverage)
7. Return on invested capital: Bettin-Mauboussin Cash ROCE > 15% per year
8. Debt under control: net debt repayable in less than 3 years of free cash flow
9. Earnings converted to cash: free cash flow exceeds accounting net income
10. Net collection period: short or negative cash conversion cycle

Frequently asked questions

Is British American Tobacco p.l.c. a quality stock?

British American Tobacco p.l.c. gets a quality score of 6/10 (medium quality), calculated over the 10 Lubin Investment criteria: profitability, revenue and free cash flow growth, share buybacks, margins, debt and return on capital.

How is British American Tobacco p.l.c.'s score calculated?

The score is the total of validated criteria (YES / PARTIAL / NO) using thresholds drawn from the financial literature (Warren Buffett, Mauboussin, Aswath Damodaran), automatically and with no human opinion.

What is British American Tobacco p.l.c.'s P/FCF?

The price-to-free-cash-flow (P/FCF) multiple of British American Tobacco p.l.c. stock is 23.3×. At Lubin Investment, valuation is judged separately from quality.

Where to see British American Tobacco p.l.c.'s full analysis?

The full interactive analysis (10-criteria detail, history, P/FCF valuation, sector comparisons) is available at https://lubin-investment.com/analyse/BTI?lng=en.

Other stocks in the Tobacco sector

• Altria Group (MO) — score 9/10, P/FCF 14.0×
• Philip Morris CR a.s. (TABAK.PR) — score 8/10, P/FCF 4.1×
• AIR Global (AIIR) — score 7/10, P/FCF 12.3×
• Imperial Brands (IMB.L) — score 7/10, P/FCF 752.9×
• Japan Tobacco (2914.T) — score 7/10, P/FCF 31.0×

Go further

👉 See the full interactive analysis of BTI

Other resources : Detailed methodology · All stocks in the Tobacco sector · Stocks rated 10 out of 10 · Top quality companies · Lubin Investment pricing.