How to buy British American Tobacco (BATS) shares

Learn how to easily invest in British American Tobacco shares.

British American Tobacco p.l.c
LSE: BATS - GBX
TOBACCO
p2,599.00
+ p6.00 ( + 0.23%)

British American Tobacco p.l.c (BATS) is a leading tobacco business based in the UK. It opened the day at 2703.5p after a previous close of 2694p. During the day the price has varied from a low of 2691.5p to a high of 2728.5p. The latest price was 2699p (25 minute delay). British American Tobacco is listed on the London Stock Exchange (LSE). All prices are listed in pence sterling.

How to buy shares in British American Tobacco

  1. Choose a platform. If you're a beginner, our share-dealing table below can help you choose.
  2. Open your account. You'll need your ID, bank details and national insurance number.
  3. Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
  4. Search the platform for stock code: BATS in this case.
  5. Research British American Tobacco shares. The platform should provide the latest information available.
  6. Buy your British American Tobacco shares. It's that simple.
The whole process can take as little as 15 minutes.

How has coronavirus impacted British American Tobacco's share price?

Since the stock market crash that started in February 2020, British American Tobacco's share price has had significant negative movement.

Its last market close was 2599p, which is 22.48% down on its pre-crash value of 3352.5p and 10.01% up on the lowest point reached during the March 2020 crash when the shares fell as low as 2362.5p.

If you had bought £1,000 worth of British American Tobacco shares at the start of February 2020, those shares would have been worth £702.45 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth £766.45.

British American Tobacco share price (LSE:BATS)

Use our graph to track the performance of BATS stocks over time.

British American Tobacco shares at a glance

Information last updated 2021-08-27.
Open2703.5p
High2728.5p
Low2691.5p
Close2699p
Previous close2694p
Change5p
Change %0.1856%
Volume1,593,357
Information last updated 2021-10-16.
52-week range2420.657p - 2959.247p
50-day moving average2644.75p
200-day moving average2730.1013p
Wall St. target price3499.5p
PE ratio9.6331
Dividend yield211.7p (8.16%)
Earnings per share (TTM)269.8p
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Fees for buying 10x British American Tobacco shares with popular platforms

Share prices fluctuate in real time, so the costs presented here should be considered as a guide only. They do not incorporate stamp duty. Always refer to the platform itself for availability and pricing – which may differ from our information.

Platform Platform fee Min. initial deposit Trading fee estimate
Freetrade logo £0 No minimum £0.00
£269.90 total
Capital at risk
eToro Free Stocks logo £0 $50 £0.00
£269.90 total
Capital at risk
Fineco logo £0 No minimum £0.00
£269.90 total
Capital at risk
Degiro Share Dealing logo £0 £0.01 £1.79
£271.69 total
Capital at risk
Hargreaves Lansdown Fund and Share Account logo £0 £1 £11.95
£281.85 total
Capital at risk
interactive investor Trading Account logo £9.99 per month No minimum £7.99
£277.89 total
Capital at risk
Halifax Share Dealing Account logo £36 per year £20 £9.50
£279.40 total
Capital at risk

Full comparison of share dealing platforms

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

Is it a good time to buy British American Tobacco stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

British American Tobacco price performance over time

Historical closes compared with the last close of 2699p

1 week (2021-10-07) 6.51%
1 month (2021-09-17) 1.54%
3 months (2021-07-16) -5.20%
6 months (2021-04-16) -6.96%
1 year (2020-10-16) 2.08%
2 years (2019-10-16) 0.20%
3 years (2018-10-16) -15.03%
5 years (2016-10-14) -44.77%

Is British American Tobacco under- or over-valued?

Valuing a stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of overall performance. However, analysts commonly use some key metrics to help gauge value.

P/E ratio

British American Tobacco's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 10x. In other words, British American Tobacco shares trade at around 10x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

However, British American Tobacco's P/E ratio is best considered in relation to those of others within the tobacco industry or those of similar companies.

PEG ratio

British American Tobacco's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 10.6854. Higher PEG ratios such as this can be interpreted as meaning the shares offer worse value given the current rate of growth.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into British American Tobacco's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

However, it's sensible to consider British American Tobacco's PEG ratio in relation to those of similar companies.

EBITDA

British American Tobacco's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping £12.1 billion.

The EBITDA is a measure of a British American Tobacco's overall financial performance and is widely used to measure a its profitability.

To put that into context you can compare it against similar companies.

Financials

Revenue TTM £25.7 billion
Operating margin TTM 43.64%
Gross profit TTM £21.3 billion
Return on assets TTM 4.84%
Return on equity TTM 9.59%
Profit margin 24.12%
Book value 27.502p
Market capitalisation £59.6 billion

TTM: trailing 12 months

Environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like British American Tobacco.

Total ESG risk score

British American Tobacco's total ESG risk: 29.29

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and British American Tobacco's overall score of 29.29 (as at 01/01/2019) is nothing to write home about – landing it in it in the 52nd percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like British American Tobacco is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

To gain some more context, you can compare British American Tobacco's total ESG risk score against those of similar companies.

Environmental score

British American Tobacco's environmental score: 6.69/100

British American Tobacco's environmental score of 6.69 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that British American Tobacco is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Social score

British American Tobacco's social score: 18.04/100

British American Tobacco's social score of 18.04 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that British American Tobacco is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Governance score

British American Tobacco's governance score: 12.05/100

British American Tobacco's governance score puts it squarely in the 6th percentile of companies rated in the same sector. That could suggest that British American Tobacco is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Controversy score

British American Tobacco's controversy score: 3/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. A high-profile company, British American Tobacco scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that British American Tobacco hasn't always managed to keep its nose clean.

Wondering how that compares? Below are the controversy scores of similar companies.

Environmental, social, and governance (ESG) summary

British American Tobacco p.l.c was last rated for ESG on: 2019-01-01.

Total ESG score 29.29
Total ESG percentile 51.65
Environmental score 6.69
Environmental score percentile 6
Social score 18.04
Social score percentile 6
Governance score 12.05
Governance score percentile 6
Level of controversy 3

British American Tobacco share dividends

8.2%

Dividend yield: 8.16% of stock value

8.3%

Forward annual dividend yield: 8.3% of stock value

79.7%

Dividend payout ratio: 79.67% of net profits

British American Tobacco has recently paid out dividends equivalent to 8.16% of its share value annually.

British American Tobacco has paid out, on average, around 79.67% of recent net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 8.3% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), shareholders could enjoy a 8.3% return on their shares, in the form of dividend payments. In British American Tobacco's case, that would currently equate to about 211.7p per share.

British American Tobacco's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

The latest dividend was paid out to all shareholders who bought their shares by 23 December 2021 (the "ex-dividend date").

British American Tobacco's dividend yield is perhaps best considered in relation to those of similar companies.

Have British American Tobacco's shares ever split?

British American Tobacco's shares were split on a 1:2 basis on 8 September 1998. So if you had owned 2 shares the day before before the split, the next day you'd have owned 1 share. This wouldn't directly have changed the overall worth of your British American Tobacco shares – just the quantity. However, indirectly, the new 100% higher share price could have impacted the market appetite for British American Tobacco shares which in turn could have impacted British American Tobacco's share price.

Share price volatility

Over the last 12 months, British American Tobacco's shares have ranged in value from as little as 2420.657p up to 2959.247p. A popular way to gauge a stock's volatility is its "beta".

BATS.LSE volatility(beta: 0.73)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while British American Tobacco's is 0.7288. This would suggest that British American Tobacco's shares are less volatile than average (for this exchange).

To put British American Tobacco's beta into context you can compare it against those of similar companies.

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2 Responses

    Default Gravatar
    KaraboJanuary 14, 2019

    How to buy shares?

      Avatarfinder Customer Care
      JoshuaJanuary 17, 2019Staff

      Hi Karabo,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      If you want to buy shares in British American Tobacco, you are on the right page. One of the best ways for you to buy shares is to use a trading platform. Please check the table above and compare your options based on price per trade, frequent trade rate, and platform fee. Once you found the right one for you, click on the “Go to site” green button to learn more.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

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