British American Tobacco trades at 20% discount with 6% yield, boosted by fast-growing oral segment.

British American Tobacco (BAT) is currently trading at a 20% discount to its intrinsic value and offers a 6% dividend yield, making it attractive for investors. Its modern oral product segment, led by Velo Plus, is rapidly expanding with U.S. sales up 297%, establishing global leadership in this high-margin category. Despite challenges in heated tobacco and vaping due to competition and regulation, BAT's traditional combustible products continue to generate strong cash flow, supporting dividends, share buybacks, and investments in next-generation products. With a price-to-earnings ratio of 11.69 and a buy rating, BAT provides a margin of safety, though potential gains may be more limited compared to previous lows.