Vodacom Group (VOD.JO)
Communications · JSE · South Africa
Fundamentals
Valuation and ratings
Vodacom Group trades at R155.63, which is 116% below the R335.70 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 76 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 14.7 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Vodacom Group
Vodacom Group Limited provides communications products and services in South Africa, Egypt, Kenya, and internationally. The company offers voice, messaging, converged services, broadband, data connectivity, mobile financial services, and other value-added services. It also provides mobile and fixed line connectivity, Internet of Things technology, and cloud hosting and security services, as well as the SmartCitizen mobile application for e-government solutions. In addition, the company offers financial business solutions, including point of sales, business cash advance, group schemes, trading bridge, and business legal cover. Further, it provides personal financial solutions comprising the VodaPay mobile digital payments app; VodaSure, a short- and long-term insurance coverage for devices, emergency assistance, legal advice, life, and funeral; and VodaLend, a digital funding solution. The company was incorporated in 1993 and is headquartered in Midrand, South Africa. Vodacom Group Limited operates as a subsidiary of Vodafone Group Public Limited Company.
VOD.JO passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Vodacom Group (VOD.JO) undervalued?
Against our discounted cash flow estimate of R335.70, VOD.JO at R155.63 is 116% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is VOD.JO's P/E ratio?
VOD.JO trades at 14.7 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.