Bharti Airtel Limited
Bharti Airtel Limited Fundamental Analysis
Bharti Airtel Limited (BHARTIARTL.BO) shows moderate financial fundamentals with a PE ratio of 40.03, profit margin of 14.94%, and ROE of 25.54%. The company generates $1903.7B in annual revenue with strong year-over-year growth of 15.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BHARTIARTL.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakBHARTIARTL.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateBHARTIARTL.BO shows balanced valuation metrics.
Growth Score
ModerateBHARTIARTL.BO shows steady but slowing expansion.
Financial Health Score
WeakBHARTIARTL.BO carries high financial risk with limited liquidity.
Profitability Score
ModerateBHARTIARTL.BO maintains healthy but balanced margins.
Key Financial Metrics
Is BHARTIARTL.BO Expensive or Cheap?
P/E Ratio
BHARTIARTL.BO trades at 40.03 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BHARTIARTL.BO's PEG of -1.78 indicates potential undervaluation.
Price to Book
The market values Bharti Airtel Limited at 9.75 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.20 times EBITDA. This is generally considered low.
How Well Does BHARTIARTL.BO Make Money?
Net Profit Margin
For every $100 in sales, Bharti Airtel Limited keeps $14.94 as profit after all expenses.
Operating Margin
Core operations generate 31.36 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.54 in profit for every $100 of shareholder equity.
ROA
Bharti Airtel Limited generates $5.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bharti Airtel Limited generates strong operating cash flow of $1.03T, reflecting robust business health.
Free Cash Flow
Bharti Airtel Limited generates strong free cash flow of $630.75B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $110.67 in free cash annually.
FCF Yield
BHARTIARTL.BO converts 5.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.78
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.45
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How BHARTIARTL.BO Stacks Against Its Sector Peers
| Metric | BHARTIARTL.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.03 | 21.28 | Worse (Expensive) |
| ROE | 25.54% | 1116.00% | Weak |
| Net Margin | 14.94% | -55491.00% (disorted) | Strong |
| Debt/Equity | 1.59 | 1.38 | Neutral |
| Current Ratio | 0.45 | 1.61 | Weak Liquidity |
| ROA | 5.74% | -204827.00% (disorted) | Weak |
BHARTIARTL.BO outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Bharti Airtel Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
92.45%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
198.22%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
907.38%
Industry Style: Growth, Technology, Streaming
High Growth