Vodacom Group Limited

JSE:VOD Stock Report

Market Cap: R201.5b

Vodacom Group Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 (ZAR104.65) is trading below our estimate of fair value (ZAR158.5)

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 Ratio13.7x
EarningsR14.75b
Market CapR201.54b

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 Average19.1x
3045 Taiwan Mobile
24.4x5.6%NT$338.7b
7020 Etihad Etisalat
14.7x8.4%ر.س42.7b
4904 Far EasTone Telecommunications
26.5x10.4%NT$318.0b
A017670 SK Telecom
10.7x8.3%₩12.1t
VOD Vodacom Group
13.7x15.4%R201.5b

Price-To-Earnings vs Peers: VOD is good value based on its Price-To-Earnings Ratio (13.7x) compared to the peer average (19.1x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
VOD 13.7xIndustry Avg. 16.9xNo. of Companies10PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VOD is good value based on its Price-To-Earnings Ratio (13.7x) compared to the Global Wireless Telecom industry average (16.9x).

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 Ratio13.7x
Fair PE Ratio11.7x

Price-To-Earnings vs Fair Ratio: VOD is expensive based on its Price-To-Earnings Ratio (13.7x) compared to the estimated Fair Price-To-Earnings Ratio (11.7x).

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
CurrentR104.65
R115.00
+9.9%
10.7%R150.00R99.00n/a11
Nov ’25R109.00
R115.27
+5.8%
10.6%R150.00R99.00n/a11
Oct ’25R106.51
R113.90
+6.9%
11.3%R150.00R99.00n/a10
Sep ’25R110.04
R113.20
+2.9%
11.7%R150.00R99.00n/a10
Aug ’25R99.28
R110.18
+11.0%
7.5%R130.00R99.00n/a11
Jul ’25R95.60
R110.00
+15.1%
7.5%R130.00R99.00n/a11
Jun ’25R92.45
R108.91
+17.8%
8.7%R130.00R93.00n/a11
May ’25R90.45
R113.70
+25.7%
9.1%R130.00R93.00n/a10
Apr ’25R98.55
R114.90
+16.6%
8.6%R130.00R97.00n/a10
Mar ’25R94.22
R116.11
+23.2%
10.6%R140.00R97.00n/a9
Feb ’25R95.30
R119.44
+25.3%
12.2%R144.00R97.00n/a9
Jan ’25R106.00
R119.25
+12.5%
11.1%R140.00R98.00n/a8
Dec ’24R97.94
R119.38
+21.9%
10.9%R140.00R98.00n/a8
Nov ’24R103.36
R120.57
+16.7%
12.0%R140.00R98.00R109.007
Oct ’24R105.76
R120.14
+13.6%
12.5%R140.00R98.00R106.517
Sep ’24R108.50
R121.57
+12.0%
14.1%R150.00R98.00R110.047
Aug ’24R118.34
R123.88
+4.7%
14.3%R150.00R98.00R99.288
Jul ’24R117.20
R125.78
+7.3%
13.6%R150.00R98.00R95.609
Jun ’24R111.03
R127.22
+14.6%
12.5%R150.00R98.00R92.459
May ’24R125.23
R131.89
+5.3%
11.5%R155.00R108.00R90.459
Apr ’24R122.04
R132.11
+8.3%
11.2%R155.00R108.00R98.559
Mar ’24R127.07
R131.90
+3.8%
10.6%R155.00R108.00R94.2210
Feb ’24R121.70
R139.80
+14.9%
14.1%R172.00R108.00R95.3010
Jan ’24R122.70
R143.70
+17.1%
10.8%R172.00R116.00R106.0010
Dec ’23R123.80
R143.70
+16.1%
10.8%R172.00R116.00R97.9410
Nov ’23R124.86
R143.70
+15.1%
11.1%R172.00R116.00R103.3610

Analyst Forecast: Target price is less than 20% higher than the current share price.

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