Vodafone Group Public Limited Company

LSE:VOD Stock Report

Market Cap: UK£18.2b

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

  • PM 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 (£0.67) is trading below our estimate of fair value (£2.25)

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?

Other financial metrics that can be useful for relative valuation.

VOD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.7x
Enterprise Value/EBITDA7.3x
PEG Ratio-0.04x

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 Average24.1x
AAF Airtel Africa
33.2x49.2%UK£3.5b
BT.A BT Group
5.6x-7.5%UK£10.4b
600050 China United Network Communications
19.1x12.8%CN¥150.8b
RCI.B Rogers Communications
38.5x22.5%CA$32.8b
VOD Vodafone Group
2x-51.4%UK£18.2b

Price-To-Earnings vs Peers: VOD is good value based on its Price-To-Earnings Ratio (2x) compared to the peer average (24.1x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-20.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-20.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: VOD is good value based on its Price-To-Earnings Ratio (2x) compared to the Global Wireless Telecom industry average (17.2x).


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 Ratio2x
Fair PE Ratio4.4x

PM vs Fair Ratio: VOD is good value based on its Price-To-Earnings Ratio (2x) compared to the estimated Fair Price-To-Earnings Ratio (4.4x).


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£0.66
UK£0.97
+46.4%
26.9%UK£1.45UK£0.68n/a16
Feb ’25UK£0.67
UK£0.99
+46.6%
26.1%UK£1.44UK£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£0.75n/a16
Oct ’24UK£0.77
UK£1.07
+39.4%
25.3%UK£1.56UK£0.74n/a17
Sep ’24UK£0.74
UK£1.07
+45.6%
24.8%UK£1.54UK£0.72n/a16
Aug ’24UK£0.74
UK£1.08
+45.6%
23.8%UK£1.55UK£0.70n/a16
Jul ’24UK£0.74
UK£1.10
+49.3%
26.6%UK£1.86UK£0.70n/a16
Jun ’24UK£0.76
UK£1.11
+46.3%
25.9%UK£1.83UK£0.69n/a16
May ’24UK£0.96
UK£1.17
+21.6%
26.4%UK£1.84UK£0.72n/a18
Apr ’24UK£0.89
UK£1.18
+32.6%
28.6%UK£1.84UK£0.72n/a17
Mar ’24UK£1.00
UK£1.20
+20.3%
26.4%UK£1.93UK£0.74n/a18
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
Oct ’23UK£1.01
UK£1.53
+51.0%
19.0%UK£2.18UK£0.92UK£0.7722
Sep ’23UK£1.12
UK£1.53
+36.5%
18.7%UK£2.29UK£1.04UK£0.7422
Aug ’23UK£1.21
UK£1.53
+26.9%
16.5%UK£2.22UK£1.09UK£0.7422
Jul ’23UK£1.27
UK£1.60
+25.9%
16.9%UK£2.27UK£1.12UK£0.7421
Jun ’23UK£1.27
UK£1.64
+29.2%
16.1%UK£2.25UK£1.11UK£0.7621
May ’23UK£1.22
UK£1.65
+35.6%
15.1%UK£2.27UK£1.09UK£0.9621
Apr ’23UK£1.26
UK£1.68
+32.8%
14.6%UK£2.25UK£1.09UK£0.8921
Mar ’23UK£1.29
UK£1.68
+30.7%
12.4%UK£2.28UK£1.20UK£1.0020
Feb ’23UK£1.28
UK£1.66
+29.6%
12.9%UK£2.29UK£1.20UK£0.9122

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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