Bharti Airtel Limited

BHARTIARTL.BO•telecom-services

Current Price

1,894.95INR

per share

Fair Value

1,118.06INR

Overvalued

69.1%

Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 10.56%, higher than industry average of 9.62%.

Growth Trajectory

Profitability

In the growth phase company makes 33.36% profit on every dollar of sales, higher than industry average of 15.85%.

Profitability Trajectory

Risk Profile

Investors expect at least 7.62% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)

Return on Invested Capital (%)

Financial Health Overview

Enterprise Value

8.58T INR

Equity Value

6.80T INR

FCF Yield

49.06%

Average ROIC

18.93%

Cost of Capital

8.07%

P/E Ratio

25.61x

Financial Metric	Most Recent 12 months (INR)	Previous Year (INR)
Revenues	1.84T INR	1.50T INR
Operating Income or EBIT	670.84B INR	370.20B INR
Interest Expense	179.22B INR	159.56B INR
Book Value Of Equity	1.20T INR	820.19B INR
Book Value Of Debt	2.03T INR	2.16T INR
Cash and Marketable Securities	490.85B INR	322.70B INR
Number of Shares Outstanding	6.09B	--
Minority interests	235.45B INR	0 INR
Current Stock Price	1894.95 INR	--
Effective Tax Rate	33.00%	--
Marginal Tax Rate	30.00%	--

Performance vs Industry

Revenue Growth

+13.02%

22.64%Company

9.62%Industry

Above Industry

Operating Margin

+20.62%

36.47%Company

15.84%Industry

Above Industry

Bharti Airtel Limited demonstrates superior performance in both growth and profitability compared to industry peers, indicating strong competitive advantages and operational excellence.

Terminal Value Analysis

Growth Rate

4.65%

Cost of Capital

8.88%

Return on Capital

8.88%

Reinvestment Rate

52.36%

Terminal value represents 61% of total enterprise value, based on 4.65% perpetual growth and 8.88% discount rate.

Equity Value Breakdown

Component	Value	Type
Present Value (Terminal Value)	5.23T INR	Add
Present Value (Cash Flow Over Next 10 Years)	3.35T INR	Add
Value of Operating Assets	8.58T INR	Sub-total
Debt	2.03T INR	Subtract
Minority Interests	235.45B INR	Subtract
Cash	490.84B INR	Add
Value of Equity	6.80T INR	Sub-total
Number of Shares	6.09B shares	Divisor
Estimated Value per Share (Fair Value)	1.11K INR	Total
Current Market Price	1.89K INR	Reference

Financial Projections

Total FCF Present Value

3.35T INR

Avg Revenue Growth

7.96%

Avg Operating Margin

32.67%

Avg ROIC

18.93%

Year	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal Year
REVENUE
Revenue	2.08T INR	2.30T INR	2.55T INR	2.82T INR	3.12T INR	3.41T INR	3.69T INR	3.95T INR	4.18T INR	4.37T INR	4.58T INR
Growth Rate	13.59%	10.55%	10.55%	10.55%	10.55%	9.37%	8.19%	7.01%	5.83%	4.65%	4.65%
PROFITABILITY
Operating Income	762.00B INR	794.61B INR	852.07B INR	912.79B INR	976.85B INR	1.06T INR	1.15T INR	1.23T INR	1.30T INR	1.37T INR	1.43T INR
Operating Margin	36.47%	34.39%	33.36%	32.32%	31.29%	31.29%	31.29%	31.29%	31.29%	31.29%	31.29%
EBIT (1-tax)	510.54B INR	532.39B INR	570.88B INR	611.57B INR	654.48B INR	722.26B INR	788.38B INR	851.10B INR	908.58B INR	959.05B INR	1.00T INR
CASH FLOW
Reinvestment	116.82B INR	129.15B INR	142.79B INR	157.86B INR	155.00B INR	296.34B INR	274.39B INR	244.16B INR	206.05B INR	215.63B INR	525.56B INR
Free Cash Flow	393.71B INR	403.23B INR	428.09B INR	453.70B INR	499.48B INR	425.92B INR	513.99B INR	606.93B INR	702.53B INR	743.42B INR	478.09B INR
Terminal Value	--	--	--	--	--	--	--	--	--	--	11.30T INR
Present Value	365.83B INR	348.14B INR	343.42B INR	338.19B INR	345.94B INR	273.46B INR	305.21B INR	332.54B INR	354.34B INR	344.39B INR	—
EFFICIENCY
ROIC	18.63%	18.63%	19.11%	19.54%	19.91%	20.98%	21.09%	21.21%	21.34%	21.49%	8.88%
Cost of Capital	7.62%	7.62%	7.62%	7.62%	7.62%	7.87%	8.12%	8.37%	8.62%	8.88%	8.88%
Sales/Capital	1.88x	1.88x	1.88x	1.88x	1.88x	0.94x	0.94x	0.94x	0.94x	0.94x	—

Profitability & Efficiency

Operating Margin (%)

ROIC (%)

Value Creation Analysis

ROIC (%)

Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (₹B)

Reinvestment (₹B)