Vodafone Group (LSE:VOD) has quietly outperformed the wider market this year, with the share price up about 38% year to date and roughly 40% over the past year.
See our latest analysis for Vodafone Group.
That steady climb, including a roughly 10% 1 month share price return and a 39% 1 year total shareholder return, suggests momentum is building as investors warm to Vodafone Group’s operational reset and earnings recovery potential.
If Vodafone’s rebound has caught your eye, this could be a good moment to broaden your radar and discover fast growing stocks with high insider ownership.
But after such a sharp rerating, is Vodafone Group still trading at a meaningful discount to its long term value, or has the market already moved ahead and priced in the next leg of its recovery?
With the narrative fair value sitting at £0.90 versus a last close of £0.95, the current price leans ahead of those long term assumptions.
The analysts have a consensus price target of £0.858 for Vodafone Group based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of £1.36, and the most bearish reporting a price target of just £0.6.
Read the complete narrative.
Curious what kind of revenue climb, margin rebuild, and future earnings multiple are needed to back that view? The narrative hinges on bolder assumptions than you might expect.
Result: Fair Value of $0.90 (OVERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, Vodafone’s weak German performance and complex restructuring efforts could derail revenue growth and margin rebuild expectations if execution stumbles.
Find out about the key risks to this Vodafone Group narrative.
While the narrative fair value suggests Vodafone Group looks slightly overvalued, its 0.7x price to sales ratio looks far cheaper than both peers at 2.0x and its own 1.5x fair ratio. This hints the market may still be underestimating the turnaround.
See what the numbers say about this price — find out in our valuation breakdown.
If this perspective does not quite align with your own, or you would rather dig into the numbers yourself, you can craft a personalised view in under three minutes, starting with Do it your way.
A great starting point for your Vodafone Group research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.