BT Group plc

BATS-CHIXE:BTL Stock Report

Market Cap: UK£14.1b

BT Group Valuation

Is BTL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BTL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
UK£3.68
Fair Value
60.9% undervalued intrinsic discount
17
Number of Analysts

Below Fair Value: BTL (£1.44) is trading below our estimate of fair value (£3.68)

Significantly Below Fair Value: BTL is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BTL?

Key metric: As BTL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for BTL. This is calculated by dividing BTL's market cap by their current earnings.
What is BTL's PE Ratio?
PE Ratio18.3x
EarningsUK£766.00m
Market CapUK£14.05b

Price to Earnings Ratio vs Peers

How does BTL's PE Ratio compare to its peers?

The above table shows the PE ratio for BTL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.5x
VOD Vodafone Group
8.6x3.7%UK£17.0b
GAMA Gamma Communications
24.9x14.2%UK£1.4b
TLKM Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia
11.5x6.6%Rp259.5t
KPN Koninklijke KPN
17.1x6.4%€13.7b
BTL BT Group
18.3x16.5%UK£14.1b

Price-To-Earnings vs Peers: BTL is expensive based on its Price-To-Earnings Ratio (18.3x) compared to the peer average (15.5x).

Price to Earnings Ratio vs Industry

How does BTL's PE Ratio compare vs other companies in the European Telecom Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies7PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BTL is expensive based on its Price-To-Earnings Ratio (18.3x) compared to the European Telecom industry average (17.2x).

Price to Earnings Ratio vs Fair Ratio

What is BTL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BTL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.3x
Fair PE Ratio20.8x

Price-To-Earnings vs Fair Ratio: BTL is good value based on its Price-To-Earnings Ratio (18.3x) compared to the estimated Fair Price-To-Earnings Ratio (20.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst BTL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.44
UK£2.01
+40.1%
25.9%UK£2.90UK£1.10n/a17
Jan ’26UK£1.44
UK£2.01
+39.7%
25.9%UK£2.90UK£1.10n/a17
Dec ’25UK£1.60
UK£2.03
+26.8%
25.7%UK£2.90UK£1.10n/a17
Nov ’25UK£1.40
UK£2.02
+44.1%
26.0%UK£2.90UK£1.10n/a17
Oct ’25UK£1.45
UK£1.99
+37.1%
26.1%UK£2.90UK£1.10n/a18
Sep ’25UK£1.39
UK£1.95
+39.9%
27.1%UK£2.90UK£1.10n/a18
Aug ’25UK£1.39
UK£1.95
+40.4%
27.1%UK£2.90UK£1.10n/a18
Jul ’25UK£1.42
UK£1.95
+37.3%
27.2%UK£2.90UK£1.10n/a18
Jun ’25UK£1.30
UK£1.91
+46.2%
27.4%UK£2.90UK£1.10n/a18
May ’25UK£1.04
UK£1.82
+75.7%
29.3%UK£2.90UK£0.98n/a18
Apr ’25UK£1.10
UK£1.86
+69.6%
28.3%UK£2.90UK£0.98n/a17
Mar ’25UK£1.05
UK£1.86
+77.8%
28.1%UK£2.90UK£1.00n/a17
Feb ’25UK£1.09
UK£1.88
+71.6%
28.0%UK£2.90UK£1.00n/a17
Jan ’25UK£1.24
UK£1.90
+54.0%
27.8%UK£2.90UK£1.00UK£1.4416
Dec ’24UK£1.24
UK£1.89
+52.8%
27.4%UK£2.90UK£1.00UK£1.6016
Nov ’24UK£1.11
UK£1.87
+68.8%
26.9%UK£2.80UK£0.95UK£1.4017
Oct ’24UK£1.17
UK£1.82
+55.3%
28.5%UK£2.80UK£0.95UK£1.4517
Sep ’24UK£1.16
UK£1.87
+62.0%
27.3%UK£2.80UK£1.00UK£1.3917
Aug ’24UK£1.23
UK£1.90
+54.5%
27.6%UK£2.80UK£1.00UK£1.3917
Jul ’24UK£1.23
UK£1.89
+53.7%
27.8%UK£2.80UK£1.00UK£1.4218
Jun ’24UK£1.49
UK£1.92
+28.9%
26.2%UK£2.80UK£1.00UK£1.3018
May ’24UK£1.59
UK£1.89
+19.2%
28.2%UK£2.80UK£0.90UK£1.0420
Apr ’24UK£1.46
UK£1.88
+28.8%
29.1%UK£2.80UK£0.90UK£1.1020
Mar ’24UK£1.40
UK£1.87
+33.2%
30.0%UK£2.80UK£0.90UK£1.0520
Feb ’24UK£1.25
UK£1.84
+47.9%
29.8%UK£2.80UK£0.90UK£1.0921
Jan ’24UK£1.13
UK£1.89
+67.1%
29.9%UK£2.80UK£0.90UK£1.2421
Analyst Price Target
Consensus Narrative from 17 Analysts
UK£2.02
Fair Value
28.8% undervalued intrinsic discount
17
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/09 02:49
End of Day Share Price 2025/01/09 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

BT Group plc is covered by 52 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jean-Michel SalvadorAlphaValue
Andrew Charles BealeArete Research Services LLP
John DaviesBanco Santander