British American Valuation
| 4162 Stock | 6.25 0.09 1.46% |
At this time, the firm appears to be undervalued. British American Tobacco shows a prevailing Real Value of USD6.46 per share. The current price of the firm is USD6.25. Our model approximates the value of British American Tobacco from analyzing the firm fundamentals such as Revenue of 2.6 B, return on equity of 69.56, and Price To Book of 8.13 X as well as examining its technical indicators and probability of bankruptcy.
Undervalued
Today
Please note that British American's price fluctuation is not too volatile at this time. Calculation of the real value of British American Tobacco is based on 3 months time horizon. Increasing British American's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the British stock is determined by what a typical buyer is willing to pay for full or partial control of British American Tobacco. Since British American is currently traded on the exchange, buyers and sellers on that exchange determine the market value of British Stock. However, British American's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 6.25 | Real 6.46 | Hype 6.16 | Naive 6.43 |
The intrinsic value of British American's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence British American's stock price.
Estimating the potential upside or downside of British American Tobacco helps investors to forecast how British stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of British American more accurately as focusing exclusively on British American's fundamentals will not take into account other important factors: British American Total Value Analysis
British American Tobacco is presently forecasted to have takeover price of 3.87 B with market capitalization of 3.51 B, debt of 21.64 M, and cash on hands of . Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the British American fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
3.87 B | 3.51 B | 21.64 M |
British American Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The latest return on assets of British suggests not a very effective usage of assets in March.British American Profitability Analysis
The company reported the revenue of 2.6 B. Net Income was 262.52 M with profit before overhead, payroll, taxes, and interest of 0.About British American Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of British American Tobacco. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of British American Tobacco based exclusively on its fundamental and basic technical indicators. By analyzing British American's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of British American's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of British American. We calculate exposure to British American's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of British American's related companies.8 Steps to conduct British American's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates British American's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct British American's valuation analysis, follow these 8 steps:- Gather financial information: Obtain British American's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine British American's revenue streams: Identify British American's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research British American's industry and market trends, including the size of the market, growth rate, and competition.
- Establish British American's growth potential: Evaluate British American's management, business model, and growth potential.
- Determine British American's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate British American's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Additional Information and Resources on Investing in British Stock
When determining whether British American Tobacco offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of British American's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of British American Tobacco Stock. Outlined below are crucial reports that will aid in making a well-informed decision on British American Tobacco Stock:Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in British American Tobacco. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.