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Is the BT share price (LON:BT.A) good value at 200p?

Jack Brumby

BT (LON:BT.A) is a large cap in the Telecommunications Services industry. The Company operates in four segments: Global Services, Enterprise, Consumer and Openreach.

For the fiscal year ended 31 March 2019, BT Group plc revenues decreased 1% to £23.46bn but net income increased 6% to £2.16bn. The BT share price appears to represent solid value right now, as shown in the group's Value Rank of 72. Let's explore this in more detail.

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Digging into BT's Value Rank

Looking at BT's StockReport, we can see that the group has a:

  • Rolling price to book value of 1.96,
  • Trailing twelve month price to earnings ratio of 7.09
  • Trailing twelve month price to free cashflow of 34.4
  • Rolling dividend yield of 7.57%
  • Trailing twelve-month price to sales ratio of 0.85

This combination of financial traits suggests that, while BT stock is not the cheapest, it is far from expensive at these levels and is worth considering - especially if it is exposed to other positive stock market factors as well.

Studies indicate that combining factors such as Value, Quality and Momentum is a more effective way of outperforming the market over longer time frames. That's why we have constructed our StockReports to give an instant impression of how well exposed Bt (LON:BT.A) is to these three factors. We go into greater detail on factor investing in this video

Stockopedia helps you to identify return-enhancing factors such as Quality, Value and Momentum by analysing thousands of data points every day. To find out more about you find investment opportunities and analyse your portfolios then take one of our two-week free trials and have a look around.