British American Tobacco p.l.c.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF, GBP converted to USD at ~1.27: GBP6.853B TTM free cash flow (~$8.703B); 4% annual FCF growth years 1-5, in line with the Horizon 2030 3-5% organic revenue growth target; 3% years 6-10; 8% discount rate; 2.5% terminal growth; ~$41.3B net debt; 2.17B shares outstanding.

Reasoning: BAT generates very large, stable free cash flow from a mature, high-margin combustibles and next-generation-products portfolio, making a conservative DCF appropriate; growth assumptions track management's own mid-single-digit long-term targets, and a higher discount rate reflects litigation, regulatory, and secular-decline risk in combustible tobacco.