BT Group Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 BT.A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BT.A (£1.05) is trading below our estimate of fair value (£4.76)

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


Key Valuation Metric

Which metric is best to use when looking at relative valuation for BT.A?

Other financial metrics that can be useful for relative valuation.

BT.A key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.5x
Enterprise Value/EBITDA4.7x
PEG Ratio-1.2x

Price to Earnings Ratio vs Peers

How does BT.A's PE Ratio compare to its peers?

The above table shows the PE ratio for BT.A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.9x
VOD Vodafone Group
2x-42.1%UK£18.0b
AAF Airtel Africa
37.1x85.9%UK£4.0b
GAMA Gamma Communications
23.8x13.8%UK£1.3b
KPN Koninklijke KPN
16.6x6.0%€13.3b
BT.A BT Group
5.5x-4.4%UK£10.2b

Price-To-Earnings vs Peers: BT.A is good value based on its Price-To-Earnings Ratio (5.5x) compared to the peer average (19.9x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: BT.A is good value based on its Price-To-Earnings Ratio (5.5x) compared to the European Telecom industry average (16.2x).


Price to Earnings Ratio vs Fair Ratio

What is BT.A'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.

BT.A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.5x
Fair PE Ratio8.8x

Price-To-Earnings vs Fair Ratio: BT.A is good value based on its Price-To-Earnings Ratio (5.5x) compared to the estimated Fair Price-To-Earnings Ratio (8.8x).


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 BT.A forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.05
UK£1.83
+75.0%
28.8%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
+72.0%
28.0%UK£2.90UK£1.00n/a17
Jan ’25UK£1.24
UK£1.90
+53.9%
27.8%UK£2.90UK£1.00n/a16
Dec ’24UK£1.24
UK£1.89
+52.6%
27.4%UK£2.90UK£1.00n/a16
Nov ’24UK£1.11
UK£1.87
+68.7%
26.9%UK£2.80UK£0.95n/a17
Oct ’24UK£1.17
UK£1.82
+55.7%
28.5%UK£2.80UK£0.95n/a17
Sep ’24UK£1.15
UK£1.87
+62.5%
27.3%UK£2.80UK£1.00n/a17
Aug ’24UK£1.22
UK£1.90
+55.1%
27.6%UK£2.80UK£1.00n/a17
Jul ’24UK£1.22
UK£1.89
+54.6%
27.8%UK£2.80UK£1.00n/a18
Jun ’24UK£1.49
UK£1.92
+29.2%
26.2%UK£2.80UK£1.00n/a18
May ’24UK£1.59
UK£1.89
+19.2%
28.2%UK£2.80UK£0.90n/a20
Apr ’24UK£1.46
UK£1.88
+29.1%
29.1%UK£2.80UK£0.90UK£1.1020
Mar ’24UK£1.41
UK£1.87
+32.8%
30.0%UK£2.80UK£0.90UK£1.0520
Feb ’24UK£1.24
UK£1.84
+48.7%
29.8%UK£2.80UK£0.90UK£1.0921
Jan ’24UK£1.12
UK£1.89
+68.4%
29.9%UK£2.80UK£0.90UK£1.2421
Dec ’23UK£1.21
UK£1.95
+61.5%
28.6%UK£2.80UK£0.90UK£1.2421
Nov ’23UK£1.29
UK£2.05
+58.8%
26.0%UK£2.85UK£0.90UK£1.1121
Oct ’23UK£1.21
UK£2.12
+74.8%
26.5%UK£3.00UK£1.00UK£1.1721
Sep ’23UK£1.46
UK£2.16
+47.7%
25.1%UK£3.00UK£1.10UK£1.1521
Aug ’23UK£1.60
UK£2.22
+38.6%
22.9%UK£3.00UK£1.10UK£1.2221
Jul ’23UK£1.85
UK£2.21
+19.2%
21.3%UK£3.00UK£1.10UK£1.2222
Jun ’23UK£1.88
UK£2.18
+16.2%
22.2%UK£3.00UK£1.10UK£1.4922
May ’23UK£1.77
UK£2.17
+22.3%
22.1%UK£3.00UK£1.10UK£1.5922
Apr ’23UK£1.84
UK£2.14
+16.7%
22.7%UK£3.00UK£1.10UK£1.4622

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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