BT Group plc
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…
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 switch sites; and offers handsets, network equipment, consumer electronics, gaming and insurance. It provides its products and services under the BT, EE, Plusnet, and Openreach brands. The company was formerly known as Newgate Telecommunications Limited and changed its name to BT Group plc in September 2001. BT Group plc was founded in 1846 and is headquartered in London, the United Kingdom.Looks overvalued
Other models: GBP 1.95–12.53 (median 7.24). The recommended value is in line with them.
Why: Dividends are a large share of earnings, so the cash paid to shareholders is the best guide to value.
Details and the full model are below.
Market price above modeled range
Uses reported dividends of GBP 0.1204 per share from TTM through 31 Mar 2026, with 2% perpetual growth (base growth capped at the terminal rate) and 10.4% discount rates. The range varies growth and discount assumptions by 1 percentage point; it is illustrative, not a statistical confidence interval or investment advice.
Assumptions: growth 2%, discount rate 10.40%, terminal growth 2.90% (sector defaults). See a worked example.
Blended growth assumption: 2.0% (sector default 7.0%, own revenue history -1.7%, analyst revenue consensus 0.1%).
5-year outlook: relative outlook of about 7.5% a year (High confidence), anchored to a 7% market return and adjusted for how this company ranks against others. A ranking aid, not a prediction. See the full forecast.
Analyst consensus expects revenue growth of 0.1% a year; the growth assumption used is 2.0%.
Adjust assumptions
Why this model: Dividends are a large share of earnings, so the cash paid to shareholders is the best guide to value.
Compare models- Recommended: Dividend discount model — GBP 1.46 (-32.3%)
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EPS-based Gordon proxy
— GBP 1.95 (-9.7%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
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FCFF (steady state)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
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EV/EBITDA (12x)
— GBP 12.53 (+480.2%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
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EV/Sales (Rule of 40)
— GBP 23.45 (+985.8%)
Not used: Used only when cash-flow models land far below the price; here they do not.
| Bear GBP 1.17 | -84.7% |
| Base GBP 1.46 | -47.7% |
| Bull GBP 1.94 | -11.5% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At GBP 2.16 the market implies perpetual dividend growth of about this rate (discount rate 10.4%).
Compare: the market implies 4.6% a year, this model assumes 2.0%. The market expects more than this model does, which is why it reads as overvalued.
How the Dividend discount model value changes with growth (rows) and discount rate (columns). Green cells are above the current price. Dividend growth cannot exceed the long-run rate, so duplicate capped scenarios are omitted.
| Growth \ Discount | 8.4% | 9.4% | 10.4% | 11.4% | 12.4% |
|---|---|---|---|---|---|
| -2.0% | 1.13 | 1.04 | 0.95 | 0.88 | 0.82 |
| 0.0% | 1.43 | 1.28 | 1.16 | 1.06 | 0.97 |
| 2.0% | 1.92 | 1.66 | 1.46 | 1.31 | 1.18 |
| 2.9% | 2.25 | 1.91 | 1.65 | 1.46 | 1.30 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 100 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +9.3% a year | 20 / 20 |
| Balance sheet | net debt 1.7x EBITDA | 20 / 20 |
| Margins | EBITDA margin 42% | 20 / 20 |
Peers in Communication Services
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| BT-A.L (this company) | GBP 2.16 | -47.7% | 13.4 | 1.7 | 5.6% | 100 |
| VOD.L Vodafone Group Public Limited Company | GBP 1.14 | 43.5% | – | 0.6 | 3.3% | 66 |
| PUB.PA Publicis Groupe S.A. | EUR 102.40 | 42.1% | 15.7 | 2.5 | 3.5% | 90 |
| CMCSA Comcast | USD 24.23 | 40.8% | 7.6 | 0.9 | 5.6% | 82 |
| TEF.MC Telefonica, S.A. | EUR 3.34 | 34.2% | – | – | 9.0% | 59 |
| INF.L Informa plc | GBP 8.40 | 23.0% | – | 1.9 | 2.4% | 66 |
| SONY Sony Group Corporation | USD 26.66 | 22.1% | – | – | – | 82 |
| EMBRAC-B.ST Embracer Group AB | SEK 95.20 | 18.7% | – | 1.0 | – | 56 |
| GOOG Alphabet Inc. (Class C) | USD 286.13 | 10.4% | 15.0 | 5.2 | 0.3% | 100 |
| Peer median | 15.0 | 1.5 | ||||
Dividends
Paid in the last 12 months: GBP 0.00 per share · yield 0.04% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 0.001 |
| 2025 | 0.001 |
| 2024 | 0.001 |
| 2023 | 0.001 |
| 2022 | 0.001 |
| 2021 | 0.000 |
Trailing 12-month financials
TTM through 31 Mar 2026 · quarterly EODHD data · data downloaded 06 Nov 2026 15:55
| Revenue | GBP 29,473,000,000 |
|---|---|
| EBITDA | GBP 12,253,500,000 |
| EBIT | GBP 4,974,000,000 |
| Net income | GBP 1,615,500,000 |
| Free cash flow | GBP 1,874,500,000 |
| Capital expenditures | GBP 7,753,500,000 |
| Debt | GBP 22,720,000,000 |
| Cash | GBP 1,718,000,000 |
| Working capital | GBP -1,294,000,000 |
| Shares outstanding | 10,056,419,318 |
| Reported dividends per share | GBP 0.1204 |