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Vedanta Resources

LSE:VED
Snowflake Description

Established dividend payer and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VED
LSE
£2B
Market Cap
  1. Home
  2. GB
  3. Materials
Company description

Vedanta Resources plc operates as a diversified natural resources company in India, Zambia, South Africa, Namibia, the United Arab Emirates, Ireland, Australia, and Liberia. The last earnings update was 20 days ago. More info.


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VED Share Price and Events
Price Volatility
VED
Industry
5yr Volatility vs Market

VED Value

 Is Vedanta Resources undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Vedanta Resources to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Vedanta Resources.

LSE:VED Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 18.6%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:VED
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 8.6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 0.88
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.882 (1 + (1- 19%) (543.79%))
4.765
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.4% + (2 * 8.6%)
18.6%

Discounted Cash Flow Calculation for LSE:VED using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Vedanta Resources is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:VED DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 1,193.00 1,173.31 1,153.94 1,134.89 1,116.16
Source Analyst x1 Est @ -1.65% Est @ -1.65% Est @ -1.65% Est @ -1.65%
Present Value
Discounted (@ 18.6%)
1,005.88 834.10 691.67 573.55 475.61
Present value of next 5 years cash flows $3,580.80
LSE:VED DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $1,116.16 × (1 + 1.4%) ÷ (18.6% – 1.4%)
$6,577.65
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $6,577.65 ÷ (1 + 18.6%)5
$2,802.80
LSE:VED Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $3,580.80 + $2,802.80
$6,383.60
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $6,383.60 / 281.90
$22.65
LSE:VED Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of LSE:VED)
0.761
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $22.65 x 0.761
£17.23
Value per share (GBP) From above. £17.23
Current discount Discount to share price of £8.25
= -1 x (£8.25 - £17.23) / £17.23
52.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Vedanta Resources is available for.
Intrinsic value
>50%
Share price is £8.25 vs Future cash flow value of £17.23
Current Discount Checks
For Vedanta Resources to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Vedanta Resources's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Vedanta Resources's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Vedanta Resources's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Vedanta Resources's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:VED PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-03-31) in USD $0.85
LSE:VED Share Price ** LSE (2018-09-19) in GBP £8.25
LSE:VED Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.315 $10.85
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry PE Ratio Median Figure of 42 Publicly-Listed Metals and Mining Companies 9.63x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 796 Publicly-Listed Companies 18.16x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Vedanta Resources.

LSE:VED PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:VED Share Price ÷ EPS (both in USD)

= 10.85 ÷ 0.85

12.79x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vedanta Resources is overvalued based on earnings compared to the GB Metals and Mining industry average.
  • Vedanta Resources is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Vedanta Resources's expected growth come at a high price?
Raw Data
LSE:VED PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.79x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
Not available
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry PEG Ratio Median Figure of 31 Publicly-Listed Metals and Mining Companies 0.44x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Vedanta Resources, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Vedanta Resources's assets?
Raw Data
LSE:VED PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-03-31) in USD $-1.21
LSE:VED Share Price * LSE (2018-09-19) in GBP £8.25
LSE:VED Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.315 $10.85
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry PB Ratio Median Figure of 127 Publicly-Listed Metals and Mining Companies 1x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,347 Publicly-Listed Companies 1.81x
LSE:VED PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:VED Share Price ÷ Book Value per Share (both in USD)

= 10.85 ÷ -1.21

-8.95x

* Primary Listing of Vedanta Resources.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vedanta Resources has negative assets, we can't compare the value of its assets to the GB Metals and Mining industry average.
X
Value checks
We assess Vedanta Resources's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Vedanta Resources has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

VED Future Performance

 How is Vedanta Resources expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.1%
Expected annual growth in revenue.
Earnings growth vs Low Risk Savings
Is Vedanta Resources expected to grow at an attractive rate?
  • Unable to compare Vedanta Resources's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Vedanta Resources's earnings growth to the United Kingdom of Great Britain and Northern Ireland market average as no estimate data is available.
  • Vedanta Resources's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:VED Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:VED Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 6.1%
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 0.4%
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 0.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:VED Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:VED Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 19,781 1
2020-03-31 16,157 1
2019-03-31 13,832 427 2
LSE:VED Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-03-31 15,359 1,659 236
2017-12-31 14,389 1,665 106
2017-09-30 13,419 1,670 -24
2017-06-30 12,470 1,633 -23
2017-03-31 11,520 1,596 -23
2016-12-31 10,713 1,281 -800
2016-09-30 9,906 965 -1,577
2016-06-30 10,322 1,739 -1,707
2016-03-31 10,738 2,512 -1,837
2015-12-31 11,430 2,963 -1,974
2015-09-30 12,122 3,413 -2,110
2015-06-30 12,500 3,045 -1,954

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Vedanta Resources is high growth as no earnings estimate data is available.
  • Vedanta Resources's revenue is expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:VED Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Vedanta Resources Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:VED Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31
2020-03-31
2019-03-31 1.51 1.51 1.51 1.00
LSE:VED Past Financials Data
Date (Data in USD Millions) EPS *
2018-03-31 0.85
2017-12-31 0.38
2017-09-30 -0.09
2017-06-30 -0.08
2017-03-31 -0.08
2016-12-31 -2.89
2016-09-30 -5.71
2016-06-30 -6.18
2016-03-31 -6.66
2015-12-31 -7.16
2015-09-30 -7.66
2015-06-30 -7.10

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Vedanta Resources will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Vedanta Resources's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Vedanta Resources has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

VED Past Performance

  How has Vedanta Resources performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Vedanta Resources's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Vedanta Resources's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Vedanta Resources has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Vedanta Resources has become profitable in the last year making it difficult to compare the GB Metals and Mining industry average.
Earnings and Revenue History
Vedanta Resources's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Vedanta Resources Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:VED Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 15,358.70 235.60 701.70
2017-12-31 14,388.95 105.70 693.95
2017-09-30 13,419.20 -24.20 686.20
2017-06-30 12,469.65 -23.45 671.15
2017-03-31 11,520.10 -22.70 656.10
2016-12-31 10,713.25 -799.90 644.15
2016-09-30 9,906.40 -1,577.10 632.20
2016-06-30 10,322.15 -1,707.25 679.95
2016-03-31 10,737.90 -1,837.40 727.70
2015-12-31 11,430.05 -1,973.85 778.80
2015-09-30 12,122.20 -2,110.30 829.90
2015-06-30 12,500.45 -1,954.45 811.20
2015-03-31 12,878.70 -1,798.60 792.50
2014-12-31 13,101.60 -895.20 758.05
2014-09-30 13,324.50 8.20 723.60
2014-06-30 13,134.75 -93.90 714.05
2014-03-31 12,945.00 -196.00 704.50
2013-12-31 13,104.80 -212.30 714.15
2013-09-30 13,264.60 -228.60 723.80
2013-06-30 13,952.40 -33.30 776.90
2013-03-31 14,640.20 162.00 830.00
2012-12-31 14,772.40 183.80 936.70
2012-09-30 14,904.60 205.60 1,043.40
2012-06-30 14,454.95 132.70 1,041.65
2012-03-31 14,005.30 59.80 1,039.90
2011-12-31 14,056.65 326.20 985.25
2011-09-30 13,398.30 461.60 874.20

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Vedanta Resources has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Vedanta Resources used its assets less efficiently than the GB Metals and Mining industry average last year based on Return on Assets.
  • Vedanta Resources has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Vedanta Resources's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Vedanta Resources has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

VED Health

 How is Vedanta Resources's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Vedanta Resources's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Vedanta Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Vedanta Resources's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Vedanta Resources's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Vedanta Resources Company Filings, last reported 5 months ago.

LSE:VED Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 6,532.90 16,641.60 5,548.90
2017-12-31 6,532.90 16,641.60 5,548.90
2017-09-30 6,221.80 15,120.50 6,103.10
2017-06-30 6,221.80 15,120.50 6,103.10
2017-03-31 6,026.50 19,779.50 9,658.30
2016-12-31 6,026.50 19,779.50 9,658.30
2016-09-30 6,964.80 16,333.30 8,167.30
2016-06-30 6,964.80 16,333.30 8,167.30
2016-03-31 6,864.30 17,763.30 8,908.30
2015-12-31 6,864.30 17,763.30 8,908.30
2015-09-30 11,155.10 16,450.90 8,916.70
2015-06-30 11,155.10 16,450.90 8,916.70
2015-03-31 12,269.30 18,188.40 8,180.00
2014-12-31 12,269.30 18,188.40 8,180.00
2014-09-30 16,926.40 17,234.00 8,171.00
2014-06-30 16,926.40 17,234.00 8,171.00
2014-03-31 17,986.70 18,409.40 8,937.90
2013-12-31 17,986.70 18,409.40 8,937.90
2013-09-30 16,946.70 16,605.40 8,134.70
2013-06-30 16,946.70 16,605.40 8,134.70
2013-03-31 18,880.90 18,044.40 7,999.90
2012-12-31 18,880.90 18,044.40 7,999.90
2012-09-30 18,847.20 17,006.00 7,163.00
2012-06-30 18,847.20 17,006.00 7,163.00
2012-03-31 18,431.40 17,820.90 6,885.30
2011-12-31 18,431.40 17,820.90 6,885.30
2011-09-30 12,260.10 13,056.30 5,889.20
  • Vedanta Resources's level of debt (254.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (95.6% vs 254.7% today).
  • Debt is not well covered by operating cash flow (10%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.1x coverage).
X
Financial health checks
We assess Vedanta Resources's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Vedanta Resources has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

VED Dividends

 What is Vedanta Resources's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.88%
Current annual income from Vedanta Resources dividends. Estimated to be 6.68% next year.
If you bought £2,000 of Vedanta Resources shares you are expected to receive £158 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Vedanta Resources's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.74%).
  • Vedanta Resources's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (4.77%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:VED Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 25 Stocks 6.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 667 Stocks 3.9%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 0.9%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 1.7%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 4.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:VED Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 0.79 2.00
2020-03-31 0.71 3.00
2019-03-31 0.70 3.00
LSE:VED Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-05-23 0.650 6.391
2017-11-10 0.590 5.637
2017-05-24 0.550 5.605
2016-11-10 0.400 3.796
2016-05-12 0.300 4.468
2015-11-04 0.000 0.000
2015-05-14 0.630 8.066
2014-11-13 0.620 7.390
2014-05-15 0.610 3.678
2013-05-16 0.580 3.620
2012-07-27 0.550 3.170
2011-05-26 0.525 2.738
2011-05-05 0.525 1.520
2010-06-29 0.450 1.257
2009-11-05 0.425 1.102
2009-05-07 0.415 1.520
2008-11-06 0.415 4.425
2008-09-22 0.415 2.926

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Vedanta Resources's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Vedanta Resources's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Vedanta Resources afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Vedanta Resources has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

VED Management

 What is the CEO of Vedanta Resources's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Venkat Venkatakrishnan, image provided by Google.
Venkat Venkatakrishnan
AGE 53
TENURE AS CEO 0.1 years
CEO Bio

Mr. Srinivasan Venkatakrishnan, also known as Venkat, BCom, ACA (ICAI) serves as CEO & Director at Vedanta Resources Plc since August 31, 2018. He served as Chief Executive Officer of Anglogold Ashanti Ltd. since May 8, 2013 until August 31, 2018. Mr. Venkatakrishnan served as the Chief Financial Officer of Anglogold Ashanti Ltd. until June 1, 2013 and also served as its Acting joint Chief Executive Officer from April 1, 2013 to May 8, 2013. He served as Deputy Chief Financial Officer of Anglogold Ashanti Ltd. since 2004. He served as a Finance Director of Ashanti Goldfields Company Limited from 2000 to 2004. He served as the Chief Financial Officer of Ashanti Goldfields Co. Ltd. Prior to joining Ashanti, he served as a Director in the Reorganization Services division of Deloitte & Touche in London. He has been an Executive Director of Anglogold Ashanti Ltd. since August 1, 2005. He served as a Director of Ashanti Goldfields Co. Ltd since July 2000. He is a qualified Chartered Accountant who holds a Bachelor's degree from the University of Madras.

CEO Compensation
  • Insufficient data for Venkat to compare compensation growth.
  • Insufficient data for Venkat to establish whether their compensation is reasonable for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Vedanta Resources management team in years:

2.4
Average Tenure
53
Average Age
  • The tenure for the Vedanta Resources management team is about average.
Management Team

Anil Agarwal

TITLE
Executive Chairman
COMPENSATION
$4M
AGE
66
TENURE
42.7 yrs

Navin Agarwal

TITLE
Executive Vice Chairman
COMPENSATION
$3M
AGE
57

Venkat Venkatakrishnan

TITLE
CEO & Executive Director
AGE
53
TENURE
0.1 yrs

G. R. Kumar

TITLE
Chief Financial Officer
AGE
47
TENURE
2 yrs

Rashmi Mohanty

TITLE
Director of Investor Relations
AGE
46

Arun Arora

TITLE
Head of Corporate Communications
TENURE
0.7 yrs

Suresh Bose

TITLE
Head of Group Human Resources
AGE
50
TENURE
3 yrs

Anshu Goel

TITLE
Business Head of Copper & Precious Metals
TENURE
2.9 yrs

Pallavi Bakhru

TITLE
Senior VP & Group Head of Taxation
TENURE
2.8 yrs

Phillip Turner

TITLE
Head of Group Health
AGE
60
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Vedanta Resources board of directors in years:

3.1
Average Tenure
62
Average Age
  • The tenure for the Vedanta Resources board of directors is about average.
Board of Directors

Anil Agarwal

TITLE
Executive Chairman
COMPENSATION
$4M
AGE
66
TENURE
13.5 yrs

Navin Agarwal

TITLE
Executive Vice Chairman
COMPENSATION
$3M
AGE
57
TENURE
13.3 yrs

Venkat Venkatakrishnan

TITLE
CEO & Executive Director
AGE
53
TENURE
0.1 yrs

Tarun Jain

TITLE
Director of Vedanta Limited
AGE
58

Geoffrey Green

TITLE
Non-Executive Director
COMPENSATION
$115K
AGE
68
TENURE
6.1 yrs

Katya Zotova

TITLE
Non-Executive Director
COMPENSATION
$122K
AGE
40
TENURE
4.1 yrs

Ravi Rajagopal

TITLE
Non-Executive Director
COMPENSATION
$11K
AGE
62
TENURE
2.2 yrs

Deepak Parekh

TITLE
Senior Independent Director
COMPENSATION
$125K
AGE
73
TENURE
1.1 yrs

Ed Story

TITLE
Non­Executive Director
COMPENSATION
$79K
AGE
75
TENURE
1.3 yrs
Recent Insider Trading
  • More shares have been bought than sold by Vedanta Resources insiders in the past 3 months.
Who owns this company?
X
Management checks
We assess Vedanta Resources's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Vedanta Resources has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

VED News

External News
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Simply Wall St News

These Factors Make Vedanta Resources plc (LON:VED) A Great Investment

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.

Simply Wall St -

Only 2 Days Left To Cash In On Vedanta Resources plc (LON:VED) Dividend, Is It Worth Buying?

On the 22 August 2018, Vedanta Resources plc (LON:VED) will be paying shareholders an upcoming dividend amount of US$0.41 per share. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Vedanta Resources's latest financial data to analyse its dividend characteristics. … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

Simply Wall St -

Is Vedanta Resources plc's (LON:VED) PE Ratio A Signal To Sell For Investors?

I am writing today to help inform people who are new to the stock market. … Vedanta Resources plc (LON:VED) trades with a trailing P/E of 12.9x, which is higher than the industry average of 12.3x. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind

Simply Wall St -

What Are Analysts Saying About The Future Of Vedanta Resources plc's (LON:VED)?

Based on Vedanta Resources plc's (LON:VED) earnings update in March 2018, … with earnings expected to grow by a high double-digit of 61.62% in the upcoming year, … 5-year average growth rate of -27.84%.

Simply Wall St -

Why Vedanta Resources plc (LON:VED) Is A Dividend Rockstar

Over the past 10 years Vedanta Resources plc (LON:VED) has returned an average of 4.00% per year from dividend payouts. … 5 questions to ask before buying a dividend stock … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

Simply Wall St -

June Top Undervalued Materials Companies

In terms of relative valuation, VED’s PE ratio stands at 11.09x while its Metals and Mining peer level trades at, 12.58x indicating that relative to its comparable company group, VED’s stock can be bought at a cheaper price. … Moreover, RPC’s PE ratio is currently around 15.8x relative to its Packaging peer level of, 27.04x meaning that relative to its comparable company group, you can buy RPC’s shares at a cheaper price. … In terms of relative valuation, GLEN’s PE ratio is around 12.2x against its its Metals and Mining peer level of, 12.58x implying that relative to its comparable company group, you can buy GLEN for a cheaper price.

Simply Wall St -

Should You Be Tempted To Buy Vedanta Resources plc (LON:VED) Because Of Its PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for VED Price per share = $9.78 Earnings per share = $0.848 ∴ Price-Earnings Ratio = $9.78 ÷ $0.848 = 11.5x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you accidentally compared higher growth firms with VED, then VED’s P/E would naturally be lower since investors would reward its peers’ higher growth with a higher price. … Alternatively, if you inadvertently compared less risky firms with VED, VED’s P/E would again be lower since investors would reward its peers’ lower risk with a higher price as well.

Simply Wall St -

When Will Vedanta Resources plc (LON:VED) Become Profitable?

Vedanta Resources plc's (LSE:VED): Vedanta Resources plc operates as a diversified natural resources company in India, Zambia, South Africa, Namibia, the United Arab Emirates, Ireland, Australia, and Liberia. … Many investors are wondering the rate at which VED will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for VED’s growth and when analysts expect the company to become profitable. … They expect the company to post a final loss in 2018, before turning a profit of US$326.75M in 2019.

Simply Wall St -

Did Vedanta Resources plc's (LON:VED) Earnings Growth Outperform The Industry?

When Vedanta Resources plc (LSE:VED) released its most recent earnings update (30 September 2017), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … View our latest analysis for Vedanta Resources Commentary On VED's Past Performance I prefer to use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … This means even though Vedanta Resources is currently loss-making, it may have only just gained from the recent industry expansion, moving earnings in the right direction.What does this mean?

Simply Wall St -

Why Vedanta Resources plc (LON:VED) Could Be A Buy

Vedanta Resources plc (LSE:VED), a metals and mining company based in United Kingdom, saw significant share price volatility over the past couple of months on the LSE, rising to the highs of £9.54 and falling to the lows of £6.86. … Let’s take a look at Vedanta Resources’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … This is because Vedanta Resources’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market.

Simply Wall St -

VED Company Info

Map
Description

Vedanta Resources plc operates as a diversified natural resources company in India, Zambia, South Africa, Namibia, the United Arab Emirates, Ireland, Australia, and Liberia. It primarily produces zinc, lead, silver, copper, iron ore, and aluminum deposits. The company also explores for, extracts, and processes minerals, as well as oil and gas. In addition, it operates as a power producer with an installed capacity of 8.4 gigawatts of thermal based power generation and 274 megawatts of wind power generation. Further, the company engages in the port operations business in India; mining, smelting, and refining copper, aluminum, zinc, and iron ore; and gold and silver processing activity. Additionally, it provides accommodation and catering services; and leases medical equipment, as well as offers related building and conducting services. The company was founded in 1976 and is headquartered in London, the United Kingdom. Vedanta Resources plc is a subsidiary of Volcan Investments Limited.

Details
Name: Vedanta Resources plc
VED
Exchange: LSE
Founded: 1976
£2,327,894,591
281,895,688
Website: http://www.vedantaresources.com
Address: Vedanta Resources plc
16 Berkeley Street,
5th Floor,
London,
Greater London, W1J 8DZ,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE VED Ordinary Shares London Stock Exchange GB GBP 05. Dec 2003
OTCPK VDNR.F Ordinary Shares Pink Sheets LLC US USD 05. Dec 2003
DB VR9 Ordinary Shares Deutsche Boerse AG DE EUR 05. Dec 2003
BATS-CHIXE VEDL Ordinary Shares BATS 'Chi-X Europe' GB GBP 05. Dec 2003
BDL VEDAN GDR EACH REPR 1 ORD USD0.10 Bourse de Luxembourg LU USD 15. Jan 2010
DB A19CLF 6.375% SNR NTS 30/07/2022 USD200000'REGS Deutsche Boerse AG DE USD 25. Jan 2017
Number of employees
Current staff
Staff numbers
25,083
Vedanta Resources employees.
Industry
Diversified Metals and Mining
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/09/19 18:10
End of day share price update: 2018/09/19 00:00
Last estimates confirmation: 2018/09/07
Last earnings update: 2018/03/31
Last annual earnings update: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.