Investment Recommendations On BT GROUP

Analyst Report
A short analyst’s report on the company in the style of a real analyst’s report (i.e. 2-page and 2-column), which will normally involve the summary information which will lead to an investment recommendation.

The company is British Telecommunication Group Plc

Chapter 1: Factual Information on the company (5% of total mark)
A short section setting out basic factual information about the company, such as nature of business, size, segmental breakdown, brief history, stock market listings etc.

Chapter 2: Corporate Strategy (25% of total mark)
This should include an assessment of broad economic and political risk factors together with industrial economic trends.
Frameworks 1. PEST,

2. Porter’s five forces,

3. SWOT analysis of BT .
It is also worth analysing how economic conditions in the world, the country or the specific market affect the prospects for your chosen company. In some instances it will also be appropriate to consider how regulation and regulatory risk affect your company.

Also include the developemnts in 5G technology and BT group involvement

Chapter 3: Financial Analysis (30% of total mark)

This should include a financial analysis of both levels (e.g. sales, profits) over time and appropriate ratios over time use annual reports for ration analysis from 2015 annual report year on year to 2020  and cross-sectional Share price evaluation

use annual reports for ratio analysis of the company and its comeptitors which are and Virgin Group and Vodafone comapre  the ratios mentioned all ratios
2015
2016
2017
2018
2019
2020

Liquidity ratios
Leverage ratios
Efficiency ratios
Profitability ratios
Market value ratios

and cross-sectional Share price evaluation

(i.e. comparison with main competitor(s)).

Credit-worthiness assessment using bankruptcy risk models is essential. A company’s market value should reflect the market’s view on the company’s future profitability so examine share price performance over recent years.

Yahoo finance share price data
from April 2015 till March 2020

Chapter 4: Earnings forecasts and share valuation (20% of total mark)
Explanation of how the EPS forecasts in the analyst’s report have been arrived at, with some explanation of the assumptions which underlie the forecasts. You should also explain how you have valued the shares in order to arrive at your investment recommendation. This section should use several forecasting and valuation models and you should comment on how sensitive your valuations are to using different forecasts and models.