# BT Group (BT-A.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Communication Services / Telecom Services. Price 201p, market value 19.8 billionp.

## Valuation
- **P/E (trailing): 18.2×** (5-yr avg 1373.3×, 3-yr avg 1567.3×). BT Group trades at 18.2× trailing earnings, well below its own five-year average of 1373.3×: cheap by its own standards. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 10.7×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.7×**. Each dollar of revenue is priced at 0.7×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.6×**. The shares trade at 1.6× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 3.6×**. Enterprise value is 3.6× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 12.9%** (5-yr avg 0.1%). Free cash flow equals 12.9% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 5.5%**. The inverse of the P/E: 5.5% of the price is earned each year.

## Profitability
- **Gross margin: 28.7%**. BT Group keeps 28.7% of revenue after the direct cost of what it sells.
- **Operating margin: 15.4%**. 15.4% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 5.5%**. 5.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 8.6%**. 8.6% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 10.3%**. Return on all capital, debt included, is 10.3%.
- **Return on assets: 2.9%**. Each dollar of assets produces 2.9% of profit.

## Growth
- **Revenue growth (1 yr): -3.5%** (3-yr -1.7%/yr, 5-yr -1.6%/yr). Revenue fell 3.5% over the last year, against -1.6% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 0.0%** (3-yr -16.7%/yr, 5-yr -6.0%/yr). Earnings per share rose 0.0%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 9.5%/yr**. Free cash flow has compounded at 9.5% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 1.81**. Debt is 1.81 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 1.8×**. It would take 1.8 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 3.1×**. Operating profit covers interest 3.1× over, a safe margin.
- **Current ratio: 0.85** (quick 0.80). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 1.26**. A Z-score of 1.26 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 4.17%** (0p per share, trailing). BT Group yields 4.17%, an income-level yield.
- **Payout ratio: 75%** (41% of free cash flow). 75% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Shareholder yield: 4.3%**. Dividends plus net buybacks return 4.3% of the market value a year.

## Analyst view
- **Analyst consensus: hold** (17 analysts). 17 analysts cover BT Group; the consensus is hold, with an average price target of 225p (+12% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -1.6%** (YTD 9.4%, 3-mo -1.6%). The shares are down 1.6% over twelve months including dividends.
- **From 52-week high: -17.1%** (16.0% above the low). Trading 17% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 49**. An RSI of 49 is neutral.
- **Beta (1 yr): 0.59** (volatility 25%). Beta of 0.59 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=BT-A.L · Page: https://foliofundamentals.com/stocks/bt-a.l

Not investment advice.