LONDON -- It's always worth keeping an eye on the earnings forecasts for your favorite companies, especially if you use forward P/E ratios to gauge when to buy and sell your shares.

You never know, if City brokers have been revising their projections of late, your investments may not be as cheap -- or expensive -- as you think!

Today I'm looking at the earnings per share forecasts for BT Group (LSE: BT-A.L) (NYSE: BT), the FTSE 100 fixed-line telecom operator. All my figures are courtesy of S&P Capital IQ.

The consensus for 2013 is for earnings per share of 25 pence, which puts the 226 pence shares on a modest forward P/E of 9.

However, the estimates suggest earnings may remain flat for the next four years before dropping slightly to 23 pence for 2017, at least according to City analysts.

The data from S&P Capital IQ also indicates BT Group's revenue may stall around the 18 billion pound mark and EBITDA stagnate at about 6 billion pounds during the next few years.

All told, the forecasts aren't great, with earnings essentially predicted to go nowhere between 2013 and 2017. But then again, that P/E of 9 looks like the market is already expecting earnings won't advance anytime soon.

Whether these projections make BT Group a buy, a hold, or a sell is of course up to you. To put the company's multiple into perspective, the FTSE 100 at 5,800 trades on a P/E of 11.4.

If you already have BT Group in your portfolio, there are plenty of other great stocks out there to consider, too. Some of them are listed in our special in-depth Motley Fool report "Eight Top Dividend Plays Held By Britain's Super Investor."

The report is completely free and shows where buy-and-hold maestro Neil Woodford believes the best FTSE shares are to be found today. You can download the report by clicking here.

link

David Kuo owns shares in BT Group. The Motley Fool has a disclosure policy.
We Fools may not all hold the same opinions, but we all believe that
considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.