British American Tobacco Plc ADR (BTI) is slightly undervalued and Universal Corp (UVV) is undervalued.
Against our estimates of intrinsic value, UVV trades at the wider discount: a margin of safety of +27%, against +13% for BTI.
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 6.8% (average of 3 methods) values the shares at $59.80; the price of $43.48 is 27% below that value, and 84% of that value comes from beyond year five.
Leak Score 59/100 on 9 of 12 signals
| Metric | BTI | UVV |
|---|---|---|
| Verdict | Slightly undervalued | Undervalued |
| Price | $55.75 | $43.48 |
| Intrinsic value | $63.90 | $59.80 |
| Margin of safety | +13% | +27% |
| Leak Score | 65/100 (3/12) | 59/100 (9/12) |
| Market cap | $120.0B | $1.1B |
| Revenue growth, 5 years | 0.5% | 8.1% |
| Operating margin | 37.9% | 6.2% |
| Net margin | 24.6% | 0.7% |
| Return on equity | 13.3% | 1.3% |
| Debt to equity | 0.72 | 0.88 |
| P/E | 14.3x | 58.0x |
| Forward P/E | 10.7x | 11.0x |
| P/B | 1.9x | 0.8x |
| Dividend yield | 6.1% | 7.6% |