British American Tobacco Industries, p.l.c. ADR (BTI) Company Bio
British American Tobacco manufactures and sells tobacco products, including cigarettes, roll-your-own tobacco, cigars, e-cigarettes, medicinal nicotine products and tobacco heating products. It sells its products in the Asia-Pacific, the Americas, Eastern and Western Europe, Africa, and the Middle East. The company was founded in 1902 and is based in London, United Kingdom.
BTI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for British American Tobacco plc. To summarize, we found that British American Tobacco plc ranked in the 81th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 657.83% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for BTI, they are:
The compound growth rate in the free cash flow of British American Tobacco plc over the past 2.03 years is 0.39%; that's higher than 88.74% of free cash flow generating stocks in the Consumer Defensive sector.
British American Tobacco plc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 10.26% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BTI, try VGR, SANW, ALCO, FARM, and BIG.