Evaluating the Financial Performance of Bharti Airtel: An Analysis of WACC, NPV, IRR, Profitability Index, and Payback Period

Abhishek Narayan Pathak1

1

Publication Date: 2024/10/08

Abstract: This research paper aims to conduct a comprehensive financial performance evaluation of Bharti Airtel Limited by analyzing key financial metrics including Weighted Average Cost of Capital (WACC), Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI), and Payback Period. The project's financial infeasibility is highlighted by a negative Net Present Value (NPV) and a poor profitability index, indicating that the anticipated returns are insufficient to justify the initial investment. Further analysis shows the Internal Rate of Return (IRR) falling below the cost of capital, reinforcing the project's unviability. Additionally, both standard and discounted payback periods exceed ten years, demonstrating an extended timeframe for cost recovery. These findings collectively suggest that Bharti Airtel should explore alternative investment opportunities better aligned with its financial objectives.

Keywords: No Keywords Available

DOI: https://doi.org/10.38124/ijisrt/IJISRT24JUL1290

PDF: https://ijirst.demo4.arinfotech.co/assets/upload/files/IJISRT24JUL1290.pdf

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