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BATS:LSEBritish American Tobacco p.l.c. Analysis

Data as of 2026-03-09 - not real-time

£4,309.00

Latest Price

3/10Risk

Risk Level: Low

Executive Summary

British American Tobacco trades at 4,309 GBp, slightly below its 20‑day SMA of 4,459.65 and 50‑day SMA of 4,351.62, indicating a modest short‑term pull‑back. The RSI sits at 41.9 and the MACD histogram is negative, signaling bearish momentum in the near term, while the broader trend remains bullish and volume is increasing. Fundamentally, the company delivers a solid 30.3% profit margin, a strong 5.72% dividend yield and a payout ratio of 68.8%, backed by robust operating cash flow and a low beta of 0.055, suggesting low systematic risk.
Recent material news includes the extension of Chair Luc Jobin’s tenure to 2028, providing governance stability, but also a reported decline in revenue, highlighting headwinds in a mature market. The DCF model suggests a modest upside of about 6.4%, and the Fear & Greed Index at “Extreme Greed” reflects bullish market sentiment. Overall, the stock appears slightly undervalued with a durable dividend, yet short‑term technical signals advise caution.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 5/10

Key Factors

  • Price below 20‑day SMA and negative MACD histogram
  • RSI near neutral territory
  • Increasing volume supports potential rebound

Medium Term

1–3 years
Positive
Model confidence: 7/10

Key Factors

  • Undervalued DCF upside of ~6.4%
  • Strong dividend yield and sustainable payout ratio
  • Stable earnings with 30.3% profit margin

Long Term

> 3 years
Positive
Model confidence: 6/10

Key Factors

  • Low beta and defensive consumer sector positioning
  • Governance continuity after chair tenure extension
  • Long‑term cash generation to fund dividend and potential share buybacks

Key Metrics & Analysis

Financial Health

Revenue Growth0.10%
Profit Margin30.32%
P/E Ratio12.3
ROE15.82%
ROA5.34%
Debt/Equity72.84
P/B Ratio203.4
Op. Cash Flow£6.3B
Free Cash Flow£3.0B

Technical Analysis

TrendBullish
RSI41.9
Support£4,230.00
Resistance£4,673.00
MA 20£4,459.65
MA 50£4,351.62
MA 200£4,059.58
MACDBearish
VolumeIncreasing
Fear & Greed Index75.89

Valuation

Fair Value£476.79
Target Price£4,584.61
Upside/Downside6.40%
GradeUndervalued
TypeValue
Dividend Yield5.72%

Risk Assessment

Beta0.06
Volatility25.55%
Sector RiskLow
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.