Despite Reliance Jio’s Onslaught, Bharti Airtel Maintains Expensive Tag
BloombergQuint takes a look at valuations of the Bharti Airtel versus its global peers.
.jpg?rect=0%2C0%2C2900%2C1631&auto=format%2Ccompress&w=200)
The entry of Reliance Jio Infocomm Ltd. into the Indian telecom market may seem like setting a cat among pigeons, but that’s far from the reality.
In today’s chart of the day, we take a look at valuations of the country’s top telecom operator Bharti Airtel, and how it stacks up against global peers.
Bharti Airtel with a price to earnings multiple of 23.7 times is valued as the second most expensive telecom company behind only London’s Vodafone Plc at 40.4 times.
This is much higher than China Mobile — the world’s largest telecom company by market cap — at 15.4 times. It is also higher than American telecom behemoths Verizon and AT&T, which have a forward PE multiple between 13 and 14.5 times.
The high valuation of Bharti Airtel is reflective of the stock’s return potential, which according to a Bloomberg consensus of analyst estimate, is highest among these telecom companies at 20.9 percent.
