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Vodafone Group PLC (VOD) Fair Value & Analysis

Communication Services · GB · Market cap 22.5B GBX · ISIN GB00BH4HKS39

What is Vodafone Group PLC really worth?

VG Vodafone Group PLC VOD · LSE
Price£1.26
Fair Value£3.77
Upside+200.0%
Quality56/100

A solid business, trading 67% below our fair value of £3.77.

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Strengths

Moderate debt · generates free cash flow

Risks

!Weak Growth (revenue 5y −1.8 %/yr)
!Loss-making · -1.0% net margin
!Mixed vs. peers (7/14)
!Narrow moat 28/100
!Evidence only low, so the estimate is less certain

For context

·3.09% dividend yield
Evidence: Low Range £2.16 – £3.77

Fair value as of: Sep 2, 2026

From 14 valuation models · updated 2 days ago

Fair value updated Sep 2, 2026, revised from £4.90 to £3.77 (−23.1%) since Aug 27, 2026. Share price +9.8% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case (£2.16). The market is more pessimistic than our downside scenario.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid quality (56/100) at a price below fair value, the discount is the argument here, not the business quality.

Price vs Fair Value (5 years)

£1.26 £0.5459 Fair Value £3.77 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 2, 2026.

How to read this chart

60‑month range £0.5459 – £1.26 · fair‑value band £2.16 – £3.77 · the £1.26 price screens below the £3.77 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 2, 2026.

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Analysis

Vodafone Group PLC (VOD) currently trades at £1.26, while our model-based Fair Value estimate is £3.77, implying the stock looks roughly 66.7% undervalued today. The Quality Score stands at 56/100 (solid quality), in the Communication Services sector. Bull case: the DCF Models group reads highest at a median of £4.25 per share, and 10 of the 14 models we run sit above the £1.26 price. Bear case: the Dividend Discount group reads lowest at £0.7100, and 4 of the 14 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, Vodafone Group PLC generated revenue of £40.5B at a net margin of −1.0%. Revenue grew 7.3% year over year. It earns a return on equity of 0.1%. Net debt stands at £43.7B. Fundamentals as of Sep 2, 2026

Our scenario range runs from £2.16 (bear case) to £3.77 (bull case); at £1.26, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Communication Services peers we cover trades at 30% fair-value upside, at 200%, VOD screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF £2.98 £5.26 £8.74 78
Growth DCF £3.05 £5.08 £7.98 77
Owner Earnings £2.33 £4.25 £7.18 74
All 14 models by family
DCF Models
FCF DCF £2.98 £5.26 £8.74 78
Owner Earnings £2.33 £4.25 £7.18 74
5Y Revenue Exit £1.13 £2.03 £3.12 71
5Y EBITDA Exit £3.85 £7.11 £10.90 74
10Y Revenue Exit £1.72 £2.70 £3.92 66
10Y EBITDA Exit £3.49 £6.22 £9.84 67
Dividend Discount
Gordon GGM £0.4300 £0.9000 £1.42 66
DDM Multi-Stage £0.4300 £0.7100 £0.9400 66
Multiples
EV/EBIT £0.6300 £1.23 £1.83 63
EV/EBITDA £5.00 £7.06 £9.12 67
EV/Revenue £0.1900 £0.7800 £1.36 49
Asset-Based
NCAV (Graham) £1.10 £1.47 £2.20 54
Growth DCF
Growth DCF £3.05 £5.08 £7.98 77
Rev-Margin DCF £1.13 £2.08 £3.20 71

Widest divergence: DCF Models (£4.25) versus Dividend Discount (£0.7100). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/S ratio 0.64 TTM
EPS (TTM) £−0.0100
Dividend yield 3.1%
Net margin −1.0% FY2026
Return on equity 0.1% TTM
Return on assets (EBIT) 2.2% avg 5y
More key figures
Profitability
Operating margin 7.8% TTM
Growth
Revenue (TTM) £40.5B TTM
Revenue growth (YoY) +7.3% 3y avg −4.3%
EPS growth (YoY) −15.4%
Balance sheet & cash flow
Free cash flow 8.4B GBX FY2026
Net debt 43.7B GBX FY2026 · ≈ 5.2 yrs of FCF

Figures from reported company fundamentals · as of Sep 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 56 · Market factors (momentum, volatility) 78

Profitability 14
Margins and returns on capital today
Quality Growth 62
Are margins and returns improving?
Cashflow 78
Earnings quality: real cash, not paper profit
Fin. Strength 29
Balance sheet, leverage, solvency risk
Investment 81
Disciplined investing over empire-building
Low Volatility 85
Calm price path (market factor)
Momentum 67
Price trend over the last 3–12 months (market factor)
52W Momentum 91
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Vodafone Group Public Limited Company provides telecommunication services in Germany, the United Kingdom, rest of Europe, Turkey, and South Africa. It offers mobile and fixed services; connectivity business solutions, such as digital services, the Internet of Things (IoT) and financial services; and IoT platforms.

Full company description

Vodafone Group Public Limited Company provides telecommunication services in Germany, the United Kingdom, rest of Europe, Turkey, and South Africa. It offers mobile and fixed services; connectivity business solutions, such as digital services, the Internet of Things (IoT) and financial services; and IoT platforms. The company also provides cloud, multi-cloud, and edge computing solutions; M-PESA, an African mobile money platform to make payments and offer financial services; and international voice and roaming services. In addition, it offers unified communications, mobile connectivity, IoT connectivity, cloud and edge, E2E solutions, and security services; leases fibre and other fixed connectivity services; and engages in infrastructure assets, shared operations, growth platforms, retail, and service operations. The company serves private and public sector customers in health, banking and finance, transport and logistics, retail, utilities, and agriculture industries. Vodafone Group Public Limited Company was incorporated in 1984 and is based in Newbury, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Vodafone Group PLC reported revenue of €40.1B in FY2026 versus €45.6B in FY2022, a compound −3.2%/yr. Reported net income was −€393M in FY2026.

Growth Quality 29/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
£40.1B
Latest YoY
+7.0%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−4.3%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−1.8%
Avg. revenue growth/yr (40Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+17.9%
Value creation/yr We only publish this rate when it is defensible. Reason: fiscal 2026 is a loss year, no rate is defined from a loss
not computed
Revenue −3.2%/yr
FY22 €45.6B
FY23 €45.7B
FY24 €36.7B
FY25 €37.4B
FY26 €40.1B
Net income
FY22 €2.2B
FY23 €11.8B
FY24 €1.1B
FY25 −€4.2B
FY26 −€393M

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Cite: Fair Value Calculator (2026). "Vodafone Group PLC Fair Value". https://www.fairvalue-calculator.com/stock/VOD

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Telecom Services · 248 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 56 · Above median
Fair Value upside +200% · Top 25%
Return on equity (TTM) 0% · Below median
Return on assets 2% · Below median
Net margin (TTM) −1% · Below median
Operating margin (TTM) 8% · Below median
Revenue growth 7% · Above median
Dividend yield (TTM) 3.1% · Below median
Debt / equity 0.71× · Higher than median

Valuation Multiples vs Telecom Services median · lower = cheaper

P/B 0.60× · Cheaper than 75% of peers
P/S (TTM) 0.75× · Cheaper than median
P/FCF 3.6× · Pricier than median
EV/EBITDA 6.4× · Cheaper than median
PEG 0.59× · Cheaper than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 28
FUTURE37 · sector 16
PAST0 · sector 28
HEALTH65 · sector 89
DIVIDEND62 · sector 76

Insider activity: 25/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Telecom Services stocks, each showing price versus our Fair Value estimate (as of Sep 2, 2026).

Stock Price Fair Value vs Fair Value
China Mobile Limited 600941 ¥96.11 ¥109.88 +14%
T-Mobile US, Inc TMUS $177.75 $172.67 −3%
Verizon Communications Inc VZ $49.43 $64.43 +30%
AT&T Inc T $26.01 $43.97 +69%
Bharti Airtel Limited BHARTIARTL ₹1,935 ₹941.48 −51%
Comcast Corporation CMCSA $26.41 $95.42 +261%
China Telecom Corporation 601728 ¥6.43 ¥8.36 +30%
América Móvil, S.A. AMX $23.50 $39.45 +68%
Singapore Telecommunications Limited Z77 4.29 SGD 3.03 SGD −29%
Swisscom AG SCMN CHF 627.50 CHF 463.92 −26%

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Frequently asked questions

Is Vodafone Group PLC (VOD) overvalued or undervalued?
As of Sep 2, 2026, our model estimates a fair value of £3.77 versus a price of £1.26, about +200% upside (undervalued).
What is the fair value of VOD?
Our model-based fair value for Vodafone Group PLC is £3.77 (as of Sep 2, 2026), built from audited fundamentals. The current price: £1.26.
What is the quality score of VOD?
Vodafone Group PLC has a Quality Score of 56/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Vodafone Group PLC (VOD)?
Vodafone Group PLC reported trailing-twelve-month revenue of about £40.5B (latest available figure, as of Sep 2, 2026).
What is the net profit margin of VOD?
The net profit margin of Vodafone Group PLC is about −1.0%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Vodafone Group PLC pay a dividend?
Vodafone Group PLC currently shows a dividend yield of about 3.09% relative to its recent price (as of Sep 2, 2026).
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