Vodafone Group Public Limited Company

LSE:VOD Stock Report

Market Cap: UK£18.4b

Vodafone Group Valuation

Is VOD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of VOD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VOD (£0.71) is trading below our estimate of fair value (£1.56)

Significantly Below Fair Value: VOD is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VOD?

Key metric: As VOD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for VOD. This is calculated by dividing VOD's market cap by their current earnings.
What is VOD's PE Ratio?
PE Ratio9.3x
Earnings€2.36b
Market Cap€22.00b

Price to Earnings Ratio vs Peers

How does VOD's PE Ratio compare to its peers?

The above table shows the PE ratio for VOD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.8x
BT.A BT Group
18.5x14.7%UK£14.2b
ADVANC Advanced Info Service
25.9x10.0%฿850.6b
600050 China United Network Communications
21.1x10.1%CN¥184.4b
RCI.B Rogers Communications
17.8x18.0%CA$27.1b
VOD Vodafone Group
9.3x4.2%UK£18.4b

Price-To-Earnings vs Peers: VOD is good value based on its Price-To-Earnings Ratio (9.3x) compared to the peer average (20.8x).

Price to Earnings Ratio vs Industry

How does VOD's PE Ratio compare vs other companies in the Global Wireless Telecom Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
VOD 9.3xIndustry Avg. 16.7xNo. of Companies9PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VOD is good value based on its Price-To-Earnings Ratio (9.3x) compared to the Global Wireless Telecom industry average (16.7x).

Price to Earnings Ratio vs Fair Ratio

What is VOD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VOD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.3x
Fair PE Ratio18.3x

Price-To-Earnings vs Fair Ratio: VOD is good value based on its Price-To-Earnings Ratio (9.3x) compared to the estimated Fair Price-To-Earnings Ratio (18.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst VOD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.71
UK£0.90
+27.9%
26.3%UK£1.41UK£0.65n/a14
Nov ’25UK£0.72
UK£0.92
+27.5%
26.2%UK£1.40UK£0.64n/a14
Oct ’25UK£0.75
UK£0.96
+27.9%
27.3%UK£1.40UK£0.65n/a15
Sep ’25UK£0.74
UK£0.96
+28.4%
27.1%UK£1.41UK£0.65n/a16
Aug ’25UK£0.72
UK£0.96
+33.2%
25.9%UK£1.40UK£0.65n/a16
Jul ’25UK£0.70
UK£0.96
+36.7%
26.3%UK£1.40UK£0.64n/a16
Jun ’25UK£0.76
UK£0.93
+22.9%
25.1%UK£1.34UK£0.64n/a15
May ’25UK£0.67
UK£0.94
+38.9%
24.6%UK£1.31UK£0.65n/a15
Apr ’25UK£0.70
UK£0.97
+37.3%
25.7%UK£1.40UK£0.65n/a13
Mar ’25UK£0.70
UK£0.94
+33.8%
25.4%UK£1.40UK£0.68n/a14
Feb ’25UK£0.67
UK£0.99
+46.7%
26.2%UK£1.45UK£0.67n/a14
Jan ’25UK£0.69
UK£1.04
+51.2%
27.2%UK£1.64UK£0.70n/a14
Dec ’24UK£0.72
UK£1.03
+43.2%
26.4%UK£1.63UK£0.69n/a15
Nov ’24UK£0.75
UK£1.10
+45.9%
25.4%UK£1.65UK£0.75UK£0.7216
Oct ’24UK£0.77
UK£1.07
+39.4%
25.3%UK£1.56UK£0.74UK£0.7517
Sep ’24UK£0.74
UK£1.07
+45.6%
24.8%UK£1.54UK£0.72UK£0.7416
Aug ’24UK£0.74
UK£1.08
+45.6%
23.8%UK£1.55UK£0.70UK£0.7216
Jul ’24UK£0.74
UK£1.10
+49.3%
26.6%UK£1.86UK£0.70UK£0.7016
Jun ’24UK£0.76
UK£1.11
+46.3%
25.9%UK£1.83UK£0.69UK£0.7616
May ’24UK£0.96
UK£1.17
+21.6%
26.4%UK£1.84UK£0.72UK£0.6718
Apr ’24UK£0.89
UK£1.18
+32.6%
28.6%UK£1.84UK£0.72UK£0.7017
Mar ’24UK£1.00
UK£1.20
+20.3%
26.4%UK£1.93UK£0.74UK£0.7018
Feb ’24UK£0.91
UK£1.21
+32.5%
26.1%UK£1.95UK£0.75UK£0.6719
Jan ’24UK£0.84
UK£1.25
+48.9%
26.1%UK£2.19UK£0.79UK£0.6919
Dec ’23UK£0.92
UK£1.26
+37.9%
26.1%UK£2.11UK£0.78UK£0.7219
Nov ’23UK£1.03
UK£1.41
+37.5%
22.2%UK£2.15UK£0.79UK£0.7520

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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