British Telecom stock price beaten badly. Corrected almost 50% for the past 3 years. Mainly due to potential of cutting dividend for investment in 5G network which CAPEX has been lax,.
Based on valuation model on a 75% cut in dividend, still indicate pretty attractive valuation at current price and discount to fair value is much larger than historical median of 22% indicating market is unduly punishing the stock. If Mean Reversion is true, we will expect the fair value gap to be closed. Need to look more on the annual report before committing fresh funds
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