British American Tobacco Plc ADR (BTI) is slightly undervalued and Turning Point Brands Inc (TPB) is overvalued.
Against our estimates of intrinsic value, BTI trades at the wider discount: a margin of safety of +13%, against -61% for TPB.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 6.9% (average of 3 methods) values the shares at $63.90; the price of $55.75 is 13% below that value, and 83% of that value comes from beyond year five.
Leak Score 65/100 on 3 of 12 signals
Discounting its cash flows at 8.9% (average of 3 methods) values the shares at $37.33; the price of $60.28 is 61% above that value, and 75% of that value comes from beyond year five.
Leak Score 49/100 on 10 of 12 signals
| Metric | BTI | TPB |
|---|---|---|
| Verdict | Slightly undervalued | Overvalued |
| Price | $55.75 | $60.28 |
| Intrinsic value | $63.90 | $37.33 |
| Margin of safety | +13% | -61% |
| Leak Score | 65/100 (3/12) | 49/100 (10/12) |
| Market cap | $120.0B | $1.2B |
| Revenue growth, 5 years | 0.5% | 2.7% |
| Operating margin | 37.9% | 16.9% |
| Net margin | 24.6% | 8.8% |
| Return on equity | 13.3% | 13.7% |
| Debt to equity | 0.72 | 0.72 |
| P/E | 14.3x | 25.9x |
| Forward P/E | 10.7x | 31.1x |
| P/B | 1.9x | 2.8x |
| Dividend yield | 6.1% | 0.5% |