Is Bharti Airtel overvalued or undervalued?

As of 8 October 2025, the valuation grade for Bharti Airtel has moved from fair to expensive, indicating a shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 38.36, an EV to EBITDA of 12.87, and a PEG ratio of 0.28, which suggest that despite strong growth potential, the stock price may not be justified by its earnings growth. In comparison to peers, Bharti Airtel's PE ratio is significantly higher than Vodafone Idea's 17.3 and Tata Communications' 45.32, which indicates that investors are paying a premium for Bharti Airtel's shares relative to its earnings. Additionally, Bharti Hexacom is marked as very expensive with a PE of 60, further highlighting the elevated valuation of Bharti Airtel within the telecom sector. Notably, Bharti Airtel has outperformed the Sensex over various time frames, including a year-to-date return of 22.33% compared to the Sensex's 4.65%, which may contribute to the perception of its overvaluation.