BT Group (LSE:BT-A) is one of FTSE100the best performers may. However, on paper it still looks like one of the best value stocks in the index.

At 126.3p per share, the telecommunications giant is currently trading at a price-to-earnings (P/E) ratio of 6.7 times. That’s well below the Footsie average of 11 times.

Meanwhile, the potential dividend yield for BT shares is 6.1%. This is well above the UK blue chip average of 3.5%.

Finally, the company’s price-to-book (P/B) ratio is currently 0.9. A value below 1 suggests that the company is trading at a discount to the value of its assets.

Mixed results

Of course, the FTSE 100 is made up of many different stocks covering different sectors.

Given the current problems in the telecommunications sector – from the pressure of high interest rates and challenging economic conditions, to ponderous capital expenditure and regulatory uncertainty – it is a good idea to compare BT’s share price with that of its main industry competitors.

As you can see from the table, the company offers the best value for money in the industry. Its forward P/E ratio of less than 7 times is lower than the average of 9.8 times in the peer group. It is also the smallest in this cluster of stocks.

That said, BT shares don’t look that attractive from a value perspective when it comes to dividends. As the chart below shows, it ranks fifth in terms of profitability, behind (in descending order) Vodafone, Verizon, Orange and AT&T.

Still, the forward dividend yield of 6.1% is quite close to the sector average of 6.5%.

Verdict

All things considered, I don’t think BT shares provide attractive enough value for me to invest. Some stocks have low valuations due to penniless growth prospects and high risk profile. I think this description fits the FTSE 100 stock perfectly.

The positive side is that as our lives become more and more digital, telecom companies should get a boost. BT’s massive fiber laying program could put it in a sturdy position to capitalize on this opportunity as well.

But as well as facing industry pressure, the company’s focus is on the feeble UK economy, which puts it at risk of underperforming its internationally focused competitors. This certainly explains why its P/E ratio is trading at a lower level than the other companies I mentioned.

The latest financial data showed revenues were up just 1% in the 12 months to March. Profits also fell 31% due to the write-down of the business division.

As the UK faces a prolonged period of feeble growth, it is likely that BT’s share price will remain under pressure. So, while it looks budget-friendly on paper, today I’d much rather buy another FTSE 100 stock.