We’ve recently updated our valuation analysis.

BT Group Valuation

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

[object Object] Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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/Revenue1.6x
Enterprise Value/EBITDA5.1x
PEG Ratio-2.4x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.9x
VOD Vodafone Group
14.1x2.9%UK£25.1b
AAF Airtel Africa
8.8x12.9%UK£4.6b
TEL Telenor
14.5x5.8%kr134.2b
VTWR Vantage Towers
46.3x8.4%€16.5b
BT.A BT Group
6.8x-2.8%UK£11.9b

Price-To-Earnings vs Peers: BT.A is good value based on its Price-To-Earnings Ratio (6.8x) compared to the peer average (20.9x).


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/a12.0%
n/an/an/a

Price-To-Earnings vs Industry: BT.A is good value based on its Price-To-Earnings Ratio (6.8x) compared to the European Telecom industry average (17.2x)


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 Ratio6.8x
Fair PE Ratio9.9x

Price-To-Earnings vs Fair Ratio: BT.A is good value based on its Price-To-Earnings Ratio (6.8x) compared to the estimated Fair Price-To-Earnings Ratio (9.9x).


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 (£1.21) is trading below our estimate of fair value (£2.2)

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


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£1.21
UK£1.97
+63.6%
27.3%UK£2.80UK£0.90n/a21
Nov ’23UK£1.29
UK£2.05
+58.8%
26.0%UK£2.85UK£0.90n/a21
Oct ’23UK£1.21
UK£2.12
+74.8%
26.5%UK£3.00UK£1.00n/a21
Sep ’23UK£1.46
UK£2.16
+47.7%
25.1%UK£3.00UK£1.10n/a21
Aug ’23UK£1.60
UK£2.22
+38.6%
22.9%UK£3.00UK£1.10n/a21
Jul ’23UK£1.85
UK£2.21
+19.2%
21.3%UK£3.00UK£1.10n/a22
Jun ’23UK£1.88
UK£2.18
+16.2%
22.2%UK£3.00UK£1.10n/a22
May ’23UK£1.77
UK£2.17
+22.3%
22.1%UK£3.00UK£1.10n/a22
Apr ’23UK£1.84
UK£2.14
+16.7%
22.7%UK£3.00UK£1.10n/a22
Mar ’23UK£1.84
UK£2.15
+17.0%
22.9%UK£3.00UK£1.10n/a22
Feb ’23UK£1.93
UK£2.08
+7.9%
22.3%UK£2.75UK£1.10n/a23
Jan ’23UK£1.70
UK£2.00
+18.2%
23.0%UK£2.63UK£1.10n/a23
Dec ’22UK£1.66
UK£1.94
+16.6%
25.8%UK£2.63UK£0.95UK£1.2123
Nov ’22UK£1.45
UK£1.88
+29.7%
26.5%UK£2.61UK£0.95UK£1.2923
Oct ’22UK£1.59
UK£1.98
+24.9%
24.6%UK£3.10UK£1.00UK£1.2123
Sep ’22UK£1.69
UK£2.00
+18.4%
24.8%UK£3.10UK£1.00UK£1.4622
Aug ’22UK£1.74
UK£1.99
+14.9%
24.8%UK£3.10UK£1.00UK£1.6022
Jul ’22UK£1.96
UK£1.99
+1.6%
24.7%UK£3.10UK£1.00UK£1.8522
Jun ’22UK£1.80
UK£1.88
+4.5%
26.3%UK£3.10UK£0.95UK£1.8822
May ’22UK£1.65
UK£1.78
+7.9%
26.5%UK£2.90UK£0.95UK£1.7722
Apr ’22UK£1.56
UK£1.72
+9.7%
27.3%UK£2.91UK£0.95UK£1.8422
Mar ’22UK£1.26
UK£1.67
+31.8%
29.8%UK£2.91UK£0.75UK£1.8422
Feb ’22UK£1.28
UK£1.65
+28.9%
30.9%UK£2.91UK£0.75UK£1.9321
Jan ’22UK£1.32
UK£1.59
+20.5%
35.4%UK£2.94UK£0.41UK£1.7021
Dec ’21UK£1.23
UK£1.58
+28.6%
36.1%UK£2.94UK£0.41UK£1.6621

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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