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Is this Large Market Cap Stock target price reasonable for British American Tobacco p.l.c. (NYSE:BTI)?

The company in question is, British American Tobacco p.l.c. (NYSE:BTI) currently with a stock price of 128.35 (-0.65% today). The market cap for British American Tobacco p.l.c. is 114691, and is in the sector Consumer Goods, and Cigarettes industry. The target price for British American Tobacco p.l.c. is 139. Currently British American Tobacco p.l.c. is trading with a P/E of 20.88, and a forward P/E of 19.84. Average volume for British American Tobacco p.l.c. is 291.12 and so far today it is 149400.

Performance in the last year for British American Tobacco p.l.c. has been 29.36%. For EPS growth, British American Tobacco p.l.c. has seen a growth of 38.20%, and is looking to grow in the next year to -1.45%. More long term stats show that EPS growth has been 9.80% over the last five years and could be 6.20% for the next five years. British American Tobacco p.l.c. has seen sales growth quarter over quarter at -1.90%, with EPS growth quarter over quarter at 54.00%. The 20-day simple moving average is 2.10%, with the 200-day simple moving average coming to 10.95%.

Since the IPO date for British American Tobacco p.l.c. on the 4/14/1980, British American Tobacco p.l.c. has seen performance year to date to be 20.43%. With British American Tobacco p.l.c. trading at 128.35, the dividend yield is 3.41%, and the EPS is 6.15.

So could British American Tobacco p.l.c., be undervalued? Well as said before P/E is 20.88. The PEG is 3.37, P/S is 6.46 and the P/B is at 14.7. The P/cash is 44.49, with P/free cash flow at 85.

British American Tobacco p.l.c. ability to deal with debt shows that the current ratio is 0.9, and the quick ratio is 0.5. This is with long term debt/equity at 2.44, and total debt/equity at 3.31.

In terms of margins, British American Tobacco p.l.c. has a gross margin of 76.10%, an operating margin of 33.10% and a profit margin of 32.30%.Payout ratio for British American Tobacco p.l.c. is 67.10%. Return on assets come to 14.10% with return on investment coming to 14.70%.

Insider ownership for British American Tobacco p.l.c., is at 4.60% and institutional ownership comes to 3.00%. Outstanding shares are at 893.58. While shares float is 889.2. The float short is currently 0.03%, and short ratio is 1.03.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Mark Hines

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