Vodacom Group Valuation

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

VOD (ZAR103.7) is trading below our estimate of [[fair value]] (ZAR146.89)

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 (ZAR103.7) is trading below our estimate of fair value (ZAR146.89)

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.

The above table shows the n/a ratio for VOD. This is calculated by dividing VOD's market cap by their current preferred multiple.
What is VOD's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	n/a

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/Revenue	1.7x
Enterprise Value/EBITDA	4.6x
PEG Ratio	1.1x

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.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	21.6x
3045 Taiwan Mobile	26.9x	7.6%	NT$344.8b
7020 Etihad Etisalat	14x	7.5%	ر.س40.0b
4904 Far EasTone Telecommunications	27.6x	10.5%	NT$320.5b
RCI.B Rogers Communications	18.1x	18.1%	CA$27.9b
VOD Vodacom Group	12.3x	11.3%	R205.1b

Price-To-Earnings vs Peers: VOD is good value based on its Price-To-Earnings Ratio (12.3x) compared to the peer average (21.6x).

Price to Earnings Ratio vs Industry

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

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	15.0%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	15.0%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: VOD is good value based on its Price-To-Earnings Ratio (12.3x) compared to the Global Wireless Telecom industry average (17.6x).

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 Ratio	12.3x
Fair PE Ratio	11.2x

Price-To-Earnings vs Fair Ratio: VOD is expensive based on its Price-To-Earnings Ratio (12.3x) compared to the estimated Fair Price-To-Earnings Ratio (11.2x).

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.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	R103.70	R115.27 +11.2%	10.6%	R150.00	R99.00	n/a	11
Oct ’25	R106.51	R113.90 +6.9%	11.3%	R150.00	R99.00	n/a	10
Sep ’25	R110.04	R113.20 +2.9%	11.7%	R150.00	R99.00	n/a	10
Aug ’25	R99.28	R110.18 +11.0%	7.5%	R130.00	R99.00	n/a	11
Jul ’25	R95.60	R110.00 +15.1%	7.5%	R130.00	R99.00	n/a	11
Jun ’25	R92.45	R108.91 +17.8%	8.7%	R130.00	R93.00	n/a	11
May ’25	R90.45	R113.70 +25.7%	9.1%	R130.00	R93.00	n/a	10
Apr ’25	R98.55	R114.90 +16.6%	8.6%	R130.00	R97.00	n/a	10
Mar ’25	R94.22	R116.11 +23.2%	10.6%	R140.00	R97.00	n/a	9
Feb ’25	R95.30	R119.44 +25.3%	12.2%	R144.00	R97.00	n/a	9
Jan ’25	R106.00	R119.25 +12.5%	11.1%	R140.00	R98.00	n/a	8
Dec ’24	R97.94	R119.38 +21.9%	10.9%	R140.00	R98.00	n/a	8
Nov ’24	R103.36	R120.57 +16.7%	12.0%	R140.00	R98.00	R109.00	7
Oct ’24	R105.76	R120.14 +13.6%	12.5%	R140.00	R98.00	R106.51	7
Sep ’24	R108.50	R121.57 +12.0%	14.1%	R150.00	R98.00	R110.04	7
Aug ’24	R118.34	R123.88 +4.7%	14.3%	R150.00	R98.00	R99.28	8
Jul ’24	R117.20	R125.78 +7.3%	13.6%	R150.00	R98.00	R95.60	9
Jun ’24	R111.03	R127.22 +14.6%	12.5%	R150.00	R98.00	R92.45	9
May ’24	R125.23	R131.89 +5.3%	11.5%	R155.00	R108.00	R90.45	9
Apr ’24	R122.04	R132.11 +8.3%	11.2%	R155.00	R108.00	R98.55	9
Mar ’24	R127.07	R131.90 +3.8%	10.6%	R155.00	R108.00	R94.22	10
Feb ’24	R121.70	R139.80 +14.9%	14.1%	R172.00	R108.00	R95.30	10
Jan ’24	R122.70	R143.70 +17.1%	10.8%	R172.00	R116.00	R106.00	10
Dec ’23	R123.80	R143.70 +16.1%	10.8%	R172.00	R116.00	R97.94	10
Nov ’23	R124.86	R143.70 +15.1%	11.1%	R172.00	R116.00	R103.36	10

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