British American Tobacco p.l.c. (BTI) Simple Excess Return Model - Discounting Cash Flows
British American Tobacco p.l.c.
BTI (NYSE)

Estimated Value

USD

Market Price USD

* Values are not guaranteed, please do your own
research before making investment decisions.

Simple Excess Return Model

Used to estimate the value of companies that have reached maturity and earn stable excess returns with little to no high growth chance. Excess Return models are better suited to calculate the intrinsic value of a financial company than an enterprise valuation model (such as the Discounted Free Cash Flow Model).

See our GitHub Documentation

Interactive Assumptions

Results

Estimated Value 2.52 Thou. USD
Book value of equity invested 28.05 USD
Next year's estimated book value 29.3 USD
Present value of future excess returns 2.5 Thou. USD
Excess Return per share 16.32 USD
Cost of Equity (the discount rate) 5.11%
Average historical Return on Equity 63.3%
Average historical Payout Ratio 76.2%
Payout Ratio used 92.95%
Risk Free Rate of the 10 Year U.S. Treasury Note 4.46%

Historical and Forecasted Data

In USD

amounts of USD except for #

2024 LTM 2025 2026 2027 2028 2029
Beginning Book Value 30.1 28.05 28.05 29.3 30.61 31.98 33.4
Ending Book Value 28.05 28.05 29.3 30.61 31.98 33.4 34.89
EPS 1.71 1.86 17.76 18.55 19.38 20.24 21.14
Return on Equity 5.74% 6.69% 63.3% 63.3% 63.3% 63.3% 63.3%
Dividend per Share 2.97 2.97 16.51 17.24 18.01 18.82 19.65
Retained Earnings -1.26 -1.11 1.25 1.31 1.37 1.43 1.49
Equity Cost per Share 1.54 1.43 1.43 1.5 1.57 1.64 1.71
Cost of Equity 5.11% 5.11% 5.11% 5.11% 5.11% 5.11% 5.11%
Excess Return 0.171 0.425 16.32 17.05 17.81 18.61 19.44

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Net Income 8,517 4,156 3,838 -18,280 8,056 9,203 8,740 7,558 7,684 50,683 5,731 6,320
Total Equity 66,002 62,110 62,110 66,881 91,088 90,803 85,587 84,671 83,370 82,107 10,088 7,210
Return on Equity 63.3% 6.69% 5.74% -20.07% 8.87% 10.75% 10.32% 9.07% 9.36% 502.4% 79.48% 73.65%
Dividends Paid to Common Shareholders 6,129 6,576 6,576 6,221 6,648 6,716 6,107 6,085 6,130 6,310 4,800 5,251
Payout Ratio 76.2% 159.7% 173.7% -33.91% 83.33% 74.13% 70.94% 81.57% 79.77% 11.3% 69.16% 68.53%
Shares Outstanding 2,244 2,214 2,214 2,222 2,254 2,254 2,254 2,254 2,254 2,254 2,254 2,254
EPS 4.06 1.86 1.71 -8.26 3.54 4.02 3.82 3.31 3.41 24.77 3.08 3.4
Dividend per Share 2.73 2.97 2.97 2.8 2.95 2.98 2.71 2.7 2.72 2.8 2.13 2.33
Book Value 29.41 28.05 28.05 30.1 40.42 40.29 37.98 37.57 36.99 36.43 4.48 3.2
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Discounting Cash Flows

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