I’ve already told you the company’s peer group – and compared to almost every single peer, the company is trading at substantial P/E, EBITDA, and revenue discounts. The latest native share price is £0.92/share, which is below 10x P/E, below 6.5x EBITDA and below 2x Revenue, while most peers are closer to twice that in revenues, and at least above 10-12x in P/E. Vodafone is currently trading at less than 0.7x to sales, and this is despite a growing sales number. When you consider that Vodafone is more used to trading at sales multiples of 1.4x, then half of that starts to look like an overreaction. The impact of this transaction, and because I’m bullish on both the outcome and the specifics of the deal, is part of the reason why I’m currently bullish on, and am buying shares in Vodafone. The company is set to generate a substantial upfront cash amount, followed by a JV ownership of around 50%.
During this time he had developed a deep understanding of the financial markets and the factors that influence them. A company earning this kind of return on capital employed is most likely going to destroy shareholder wealth over time. It’s worth noting that the EPS forecast of 11.5 euro cents gives the stock a forward-looking P/E ratio of around 13.2. Mid-thirties DGI investor/senior analyst in private portfolio management/wealth management for a select number of clients. Invests in USA, Canada, Germany, Scandinavia, France, UK, BeNeLux.
Vodafone Group Public (VOD) Stock Forecast, Price & News
89 employees have rated Vodafone Group Public Chief Executive Officer Shameel Joosub on Glassdoor.com. Shameel Joosub has an approval rating of 99% among the company’s employees. This puts Shameel Joosub in the top 10% of approval ratings compared to other CEOs of publicly-traded companies. MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation. However, all things considered, I think there are better shares I could buy today.
Is Rolls-Royce’s share price the FTSE 100’s ultimate bargain? – Yahoo Finance UK
Is Rolls-Royce’s share price the FTSE 100’s ultimate bargain?.
Posted: Sun, 02 Jul 2023 04:33:00 GMT [source]
Vodafone has nearly €4B cash, and an €8.1B rolling credit facility, meaning we’re up over €12B in total that can be deployed where needed. Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. https://day-trading.info/ We’re talking about a deeply discounted stock, one that’s down 40% over 12 months and trades with a price-to-earnings ratio of 7.45. But I’d see this as something of a speculative investment. The Daily Price Change displays the day’s percentage price change using the most recently completed close.
The Vodafone share price looks attractive but investors should steer clear
As the name suggests, it’s calculated as sales divided by assets. This is also commonly referred to as the https://trading-market.org/ Asset Utilization ratio. The Current Ratio is defined as current assets divided by current liabilities.
Of course, different industries will have different growth rates that are considered good. So be sure to compare a stock to its industry’s growth rate when sizing up stocks from different groups. The value of stocks, shares and any dividend income may fall as well as rise and is not guaranteed, so you may get back less than you invested. You should not invest any money you cannot afford to lose, and you should not rely on any dividend income to meet your living expenses.
VOD Stock – Frequently Asked Questions
While the one year change shows the current conditions, the longer look-back period shows how this metric has changed over time and helps put the current reading into proper perspective. Also, by looking at the rate of this item, rather than the actual dollar value, it makes for easier comparisons across the industry and peers. Projected EPS Growth looks at the estimated growth rate for one year. It takes the consensus estimate for the current fiscal year (F1) divided by the EPS for the last completed fiscal year (F0) (actual if reported, the consensus if not).
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- Our testing substantiates this with the optimum range for price performance between 0-20.
- The group has flip-flopped from strategy to strategy over the past two decades, and shareholders have been left holding the bag.
- This means the stock could potentially provide me with some portfolio protection.
- A company with an ROE of 10%, for example, means it created 10 cents of assets for every $1 of shareholder equity in a given year.
Historical EPS Growth Rate looks at the average annual (trailing 12 months) EPS growth rate over the last 3-5 years of actual earnings. The Earnings Yield (also known as the E/P ratio) measures the anticipated yield (or return) an investment in a stock could give you based on the earnings and the price paid. As an investor, you want to buy srocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. The Momentum Scorecard focuses on price and earnings momentum and indicates when the timing is right to enter a stock.
Company Summary
Since cash can’t be manipulated like earnings can, it’s a preferred metric for analysts. Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 66 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 17th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Ahead of Market: 10 things that will decide stock action on Monday – The Economic Times
Ahead of Market: 10 things that will decide stock action on Monday.
Posted: Sun, 02 Jul 2023 11:52:00 GMT [source]
Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, administrative costs, withholding taxes and different accounting and reporting standards. They may have other tax implications, and may not provide the same, or any, regulatory protection. Exchange rate charges may adversely affect the value of shares in sterling terms, and you could lose money in sterling even if the stock price rises in the currency of origin. Any performance statistics that do not adjust for exchange rate changes are likely to result in an inaccurate portrayal of real returns for sterling-based investors. A P/B of 1 means it’s selling at its per share book value. A P/B of 2 means it’s selling at 2 times its book value.
The income number is listed on a company’s Income Statement. Shareholder Equity (which is the difference between Total Assets and Total Liabilities) can be found on the Balance Sheet. The Price to Cash Flow ratio or P/CF is price divided by its cash flow per share.
Digital infrastructure is crucial – and I see their importance and the relative value of their assets, their irreplaceability, grow going forward. At the very least, I consider quality telcos to be high-yielding bond proxies, https://bigbostrade.com/ and at best, I’ve been able to generate double-digit RoR by knowing when to buy and when to trim positions. A business like Vodafone, which consists of dozens of operations in a dozen countries and more, is complex to value.