Update shared on 05 Dec 2025
Fair value Increased 3.14%Analysts have modestly raised their price target on Vodacom Group from approximately R140.80 to about R145.22 per share. This reflects slightly lower discount rate assumptions and a marginally higher future price to earnings multiple, which together more than offset small trims to long term revenue growth and profit margin expectations.
What's in the News
- Vodacom is in talks with the Kenyan government about potentially acquiring part of its stake in Safaricom, which would increase Vodacom's existing 39.93% holding and deepen its presence in East Africa, particularly in mobile money through M Pesa (Key Developments).
- The Kenyan government is considering selling part of its Safaricom stake to help raise revenue for addressing rising debt costs and budget deficits, creating a potential strategic opportunity for Vodacom (Key Developments).
- Vodacom declared a gross interim dividend of 330 cents per ordinary share for the six months ended 30 September 2025, payable on 1 December 2025. This supports the company’s income appeal to shareholders (Key Developments).
- The group guided for interim EPS growth of 30% to 40% year on year, implying a range of 460 to 496 cents per share for the six months ended 30 September 2025 (Key Developments).
- Vodacom approved and concluded an out of court legal settlement in early November 2025, withdrawing its appeal to the Supreme Court of Appeal and abandoning a prior High Court judgment, with the settlement reflected in interim results (Key Developments).
Valuation Changes
- Fair Value: The analyst fair value estimate has risen slightly from ZAR 140.80 to approximately ZAR 145.22 per share.
- Discount Rate: The assumed discount rate has edged down marginally from 16.74 percent to 16.73 percent, modestly supporting a higher valuation.
- Revenue Growth: Long term revenue growth expectations have been trimmed slightly from about 8.47 percent to roughly 8.21 percent per year.
- Net Profit Margin: The forecast net profit margin has been reduced modestly from around 14.74 percent to about 14.47 percent.
- Future P/E: The assumed future P/E multiple has increased slightly from 15.11 times to about 15.15 times earnings.
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