(VOD) Vodafone - Ratings and Ratios
Mobile, Fixed, IoT, Cloud, M-Pesa
Description: VOD Vodafone
Vodafone Group PLC (NASDAQ: VOD) is a UK-incorporated telecommunications operator that delivers mobile and fixed-line services across Germany, the United Kingdom, the broader European market, Turkey, and South Africa. Its core portfolio includes consumer voice and data plans, enterprise connectivity, and a suite of digital solutions.
Beyond traditional telecoms, Vodafone monetises IoT platforms, cloud-and-edge infrastructure, and the M-PESA mobile-money ecosystem in Africa. The firm also offers unified communications, security services, and fibre-lease arrangements, positioning itself as a one-stop provider for both private and public-sector clients in health, finance, logistics, retail, utilities, and agriculture.
Key financial and operational metrics that have moved the needle in 2024 include: • Core earnings (EBITDA) of €13.2 bn, reflecting a 5.8 % YoY increase driven by higher enterprise data consumption; • Post-capex free cash flow of €5.1 bn, supporting a dividend yield of ~6.5 % and a net-debt-to-EBITDA ratio of 1.9×, which remains above the industry median of ~1.5×; • Subscriber base of ~308 million connections, with 5G penetration now at 42 % of total mobile users, outpacing the European average of 35 %.
Sector-level drivers that materially affect Vodafone’s outlook are the rollout of 5G spectrum (which is expected to lift average revenue per user (ARPU) by 3-4 % annually), the macro-economic pressure on discretionary consumer spend in Europe, and the continued growth of mobile-money transactions in emerging markets-M-PESA alone processed over $30 bn in transaction volume in 2023, a 12 % YoY rise.
For a deeper, data-rich assessment of Vodafone’s valuation dynamics, you may find it worthwhile to explore the analyst tools on ValueRay, where scenario-based modeling can help quantify the impact of 5G rollout speed and debt-reduction pathways.
VOD Stock Overview
| Market Cap in USD | 27,419m |
| Sub-Industry | Wireless Telecommunication Services |
| IPO / Inception | 1988-10-25 |
VOD Stock Ratings
| Growth Rating | 38.4% |
| Fundamental | 74.5% |
| Dividend Rating | 15.6% |
| Return 12m vs S&P 500 | 10.9% |
| Analyst Rating | 3.0 of 5 |
VOD Dividends
| Dividend Yield 12m | 4.24% |
| Yield on Cost 5y | 5.05% |
| Annual Growth 5y | -8.60% |
| Payout Consistency | 89.0% |
| Payout Ratio | 101.4% |
VOD Growth Ratios
| Growth Correlation 3m | 4.8% |
| Growth Correlation 12m | 84.7% |
| Growth Correlation 5y | -59.3% |
| CAGR 5y | 9.89% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.35 |
| CAGR/Mean DD 3y (Pain Ratio) | 0.76 |
| Sharpe Ratio 12m | -0.16 |
| Alpha | 18.17 |
| Beta | 0.446 |
| Volatility | 21.39% |
| Current Volume | 3859.3k |
| Average Volume 20d | 4651.1k |
| Stop Loss | 11.3 (-3.2%) |
| Signal | 0.82 |
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income (-845.3m TTM) > 0 and > 6% of Revenue (6% = 4.90b TTM) |
| FCFTA 0.18 (>2.0%) and ΔFCFTA 5.99pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 7.18% (prev -5.59%; Δ 12.77pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.25 (>3.0%) and CFO 31.93b > Net Income -845.3m (YES >=105%, WARN >=100%) |
| Net Debt (44.06b) to EBITDA (25.48b) ratio: 1.73 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.26 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (2.45b) change vs 12m ago -9.39% (target <= -2.0% for YES) |
| Gross Margin 35.36% (prev 32.78%; Δ 2.59pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 59.90% (prev 48.80%; Δ 11.10pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 3.89 (EBITDA TTM 25.48b / Interest Expense TTM 2.71b) >= 6 (WARN >= 3) |
Altman Z'' -3.99
| (A) 0.05 = (Total Current Assets 28.62b - Total Current Liabilities 22.75b) / Total Assets 128.52b |
| (B) -0.96 = Retained Earnings (Balance) -123.50b / Total Assets 128.52b |
| (C) 0.08 = EBIT TTM 10.56b / Avg Total Assets 136.45b |
| (D) -1.60 = Book Value of Equity -119.18b / Total Liabilities 74.61b |
| Total Rating: -3.99 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 74.48
| 1. Piotroski 7.0pt = 2.0 |
| 2. FCF Yield 38.30% = 5.0 |
| 3. FCF Margin 28.61% = 7.15 |
| 4. Debt/Equity 1.01 = 2.02 |
| 5. Debt/Ebitda 1.73 = 0.53 |
| 6. ROIC - WACC (= 6.82)% = 8.53 |
| 7. RoE -1.46% = -0.24 |
| 8. Rev. Trend 24.98% = 1.87 |
| 9. EPS Trend -47.62% = -2.38 |
What is the price of VOD shares?
Over the past week, the price has changed by +4.48%, over one month by +2.28%, over three months by +4.85% and over the past year by +27.76%.
Is Vodafone a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of VOD is around 11.42 USD . This means that VOD is currently overvalued and has a potential downside of -2.14%.
Is VOD a buy, sell or hold?
- Strong Buy: 0
- Buy: 0
- Hold: 3
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the VOD price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 11.1 | -4.7% |
| Analysts Target Price | 11.1 | -4.7% |
| ValueRay Target Price | 12.1 | 3.9% |
Last update: 2025-10-13 02:03
VOD Fundamental Data Overview
P/E Forward = 13.9665
P/S = 0.7322
P/B = 0.4425
P/EG = 0.6057
Beta = 0.446
Revenue TTM = 81.74b EUR
EBIT TTM = 10.56b EUR
EBITDA TTM = 25.48b EUR
Long Term Debt = 37.62b EUR (from longTermDebt, last fiscal year)
Short Term Debt = 7.05b EUR (from shortTermDebt, last fiscal year)
Debt = 53.14b EUR (from shortLongTermDebtTotal, last fiscal year)
Net Debt = 44.06b EUR (from netDebt column, last fiscal year)
Enterprise Value = 61.07b EUR (23.42b + Debt 53.14b - CCE 15.49b)
Interest Coverage Ratio = 3.89 (Ebit TTM 10.56b / Interest Expense TTM 2.71b)
FCF Yield = 38.30% (FCF TTM 23.39b / Enterprise Value 61.07b)
FCF Margin = 28.61% (FCF TTM 23.39b / Revenue TTM 81.74b)
Net Margin = -1.03% (Net Income TTM -845.3m / Revenue TTM 81.74b)
Gross Margin = 35.36% ((Revenue TTM 81.74b - Cost of Revenue TTM 52.83b) / Revenue TTM)
Gross Margin QoQ = 37.00% (prev 37.00%)
Tobins Q-Ratio = 0.48 (Enterprise Value 61.07b / Total Assets 128.52b)
Interest Expense / Debt = 1.70% (Interest Expense 903.8m / Debt 53.14b)
Taxrate = 26.47% (598.8m / 2.26b)
NOPAT = 7.76b (EBIT 10.56b * (1 - 26.47%))
Current Ratio = 1.26 (Total Current Assets 28.62b / Total Current Liabilities 22.75b)
Debt / Equity = 1.01 (Debt 53.14b / totalStockholderEquity, last fiscal year 52.74b)
Debt / EBITDA = 1.73 (Net Debt 44.06b / EBITDA 25.48b)
Debt / FCF = 1.88 (Net Debt 44.06b / FCF TTM 23.39b)
Total Stockholder Equity = 58.08b (last 4 quarters mean from totalStockholderEquity)
RoA = -0.66% (Net Income -845.3m / Total Assets 128.52b)
RoE = -1.46% (Net Income TTM -845.3m / Total Stockholder Equity 58.08b)
RoCE = 11.03% (EBIT 10.56b / Capital Employed (Equity 58.08b + L.T.Debt 37.62b))
RoIC = 10.04% (NOPAT 7.76b / Invested Capital 77.35b)
WACC = 3.21% (E(23.42b)/V(76.56b) * Re(7.66%) + D(53.14b)/V(76.56b) * Rd(1.70%) * (1-Tc(0.26)))
Discount Rate = 7.66% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: -100.0 | Cagr: -4.73%
[DCF Debug] Terminal Value 81.43% ; FCFE base≈21.08b ; Y1≈26.01b ; Y5≈44.37b
Fair Price DCF = 315.1 (DCF Value 754.68b / Shares Outstanding 2.40b; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: -47.62 | EPS CAGR: -9.04% | SUE: 0.0 | # QB: 0
Revenue Correlation: 24.98 | Revenue CAGR: -1.51% | SUE: N/A | # QB: 0
Additional Sources for VOD Stock
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Fund Manager Positions: Dataroma | Stockcircle