Is Bharti Airtel overvalued or undervalued?

As of 22 May 2025, Bharti Airtel's valuation grade has moved from fair to expensive, indicating a shift in its perceived market value. The company is currently considered overvalued, with a PE ratio of 40.24, a Price to Book Value of 9.39, and an EV to EBITDA ratio of 13.55. These metrics suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Bharti Hexacom is classified as very expensive with a PE ratio of 71.02, while Tata Communications is seen as attractive with a PE of 44.86. This positions Bharti Airtel in a relatively high valuation bracket within the telecom sector. Notably, the stock has outperformed the Sensex over the past year, returning 31.10% compared to the Sensex's 7.57%, which may reflect investor confidence despite its current overvaluation.