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BT Group (BT-A) Fair Value & Analysis

Communication Services · GB · Market cap 18.8B GBX

BG BT Group BT-A · LSE
Price£1.90
Fair Value£1.66
Upside-12.7%
Quality52/100
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Evidence: High Range £1.13 – £3.01 📤 Share as image

Fair value as of: Jul 12, 2026

From 24 valuation models · updated 9 days ago

Fair value updated Jul 12, 2026, revised from £1.57 to £1.66 (+5.7%) since Jun 24, 2026. Share price +0.5% over the past month.

Price vs Fair Value (12 months)

£2.31 £1.66 Fair Value £1.66 Jul 2025 Jul 2026

12‑month range £1.66 – £2.31 · fair‑value band £1.13 – £3.01 · the £1.90 price screens above the £1.66 fair value. As of Jul 12, 2026.

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Analysis

BT Group (BT-A) currently trades at £1.90, while our model-based Fair Value estimate is £1.66, implying the stock looks roughly 12.7% overvalued today. We read business quality at 52/100 (solid quality), in the Communication Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, BT Group generated revenue of £19.7B at a net margin of 5.5%. Revenue declined 3.9% year over year. It earns a return on equity of 8.5%. Net debt stands at £22.5B. Fundamentals as of Jul 12, 2026

Our scenario range runs from £1.13 (bear case) to £3.01 (bull case); at £1.90, the current price sits within that range. For context, the median of 10 Communication Services peers we cover trades at 37% fair-value upside, at -13%, BT-A screens richer than that median.

Key figures & financial health

Revenue (TTM) 19.7B GBX
Revenue growth (YoY) -3.9%
Net margin 5.5%
Return on equity 8.5%
Free cash flow 1.9B GBX FY2026
P/E ratio 17.3
More key figures
Operating margin 15.9%
EPS (TTM) £0.1100
Dividend yield 4.4%
EPS growth (YoY) +40.0%
Net debt 22.5B GBX FY2026

Figures from reported company fundamentals (EODHD) · as of Jul 12, 2026. TTM = trailing twelve months.

About the company

BT Group plc provides communications products and services in the United Kingdom, Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates through Consumer, Business, International, and Openreach segments. It builds, owns, and operates fixed and mobile networks; and designs, builds, markets, sells, and supports network access, connectivity, and related products. The company also offers mobile, broadband, and landline, as well as entertainment services to individuals and households; connectivity, networking, cybersecurity, collaboration tools, cloud connectivity, and cloud services to private and public sector businesses; and managed solutions for larger businesses and public sector customers. In addition, it provides fixed and IP voice; unified communications; mobile; fixed and networking; managed services; and security, and cloud and IoT solutions. Further, the company develops, manages, and leases network infrastructure, including mobile cell and …

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

BT Group reported revenue of £19.7B in FY2026 versus £20.9B in FY2022, a compound −1.5%/yr. Reported net income was £1.1B in FY2026, compounding −4.1%/yr from FY2022.

Revenue −1.5%/yr
FY22 £20.9B
FY23 £20.7B
FY24 £20.8B
FY25 £20.4B
FY26 £19.7B
Net income −4.1%/yr
FY22 £1.3B
FY23 £1.9B
FY24 £855M
FY25 £1.1B
FY26 £1.1B

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Cite: Fair Value Calculator (2026). "BT Group Fair Value". https://www.fairvalue-calculator.com/stock/BT-A

Similar stocks

10 more Telecom Services stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
SoftBank Group SFTBF $44.85 $68.21 +52%
China Mobile Limited 0941 HK$82.40 HK$80.23 -3%
T-Mobile US, Inc T1MU34 R$463.44 R$95.81 -79%
Verizon Communications Inc VZ C$19.28 C$25.89 +34%
AT&T Inc ATTB34 R$39.85 R$65.23 +64%
Bharti Airtel Limited BHARTIARTL ₹1,917 ₹964.27 -50%
Comcast Corporation CMCS34 R$24.68 R$70.53 +186%
China Telecom Corporation 601728 ¥5.68 ¥9.40 +65%
América Móvil, S.A. AMXB 22.06 MXN 30.33 MXN +37%
Vodafone Group VODN 265.00 MXN 295.75 MXN +12%

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Frequently asked questions

Is BT Group (BT-A) undervalued?
As of Jul 12, 2026, our model estimates a fair value of £1.66 versus a price of £1.90, about −13% (overvalued). Model-based estimate, not financial advice.
What is the fair value of BT-A?
Our model-based fair value for BT Group is £1.66 (as of Jul 12, 2026), built from audited fundamentals. The current price is £1.90.
What is the quality score of BT-A?
BT Group has a Quality Score of 52/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of BT Group (BT-A)?
BT Group reported trailing-twelve-month revenue of about £19.7B (latest available figure, as of Jul 12, 2026).
What is the net profit margin of BT-A?
The net profit margin of BT Group is about 5.5%, meaning it keeps roughly 5.5% of revenue as net income. Based on the latest reported figures.
Does BT Group pay a dividend?
BT Group currently shows a dividend yield of about 4.04% relative to its recent price (as of Jul 12, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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Not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.