Vodafone Group PLC

VOD: XLON (GBR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	GBX 217.00	Kjqcb	Pdkdlpcq

Vodafone: Lowering Fair Value Estimate to GBX 100 Due to Weaker Long-Term Outlook

Javier Correonero

Oct 8, 2024

We lower no-moat Vodafone’s fair value estimate to GBX 100 from GBX 125 as we take a more bearish long-term stance. This is supported by our gloomy outlook for the European telecom sector, where regulation is a major strain and Vodafone’s weaker competitive position in countries like Germany and the UK, where it has a network disadvantage compared with Deutsche Telekom and BT Group. We still see shares as 33% undervalued, trading at 5 times enterprise value/EBITDA after leases, in the low range compared with other peers. Investors might need patience as we do not see near-term catalysts.

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