VOD - Embedded Expectations Analysis - 2018 12 17
Vodafone Group Plc (VOD:GBR) currently trades below historical averages relative to UAFRS-based (Uniform) Assets, with a 1.1x Uniform P/B. At these levels, the market is pricing in somewhat bearish expectations for the firm, and management has concerns about their ability to expand internationally, continue deleveraging, and lead the race to 5GSpecifically, management may be exaggerating their intent to focus on their existing consumer base, rather than acquiring new customers, and may lack confidence in their ability to capitalize on data growth opportunities in emerging markets. Additionally, they may be concerned about their recent M&A activity in Australia, and may lack confidence in their ability to continue to grow and expand in the U.K. and Italy. Furthermore, they may lack confidence in their ability to be a partner for fiber build opportunities going forward, and to lead the race to 5G. Finally, they may lack confidence in their ability to improve their spectrum efficiency by shutting down their 3G network, and to continue deleveraging over the medium-term
Vodafone Group provides mobile and fixed telecommunication services including: access charges, voice and video calls, messaging, interconnect fees, fixed and mobile broadband and related services such as providing televisual and music content, connection fees and equipment sales. Co. provides a range of consumer products and services including mobile, fixed voice, broadband and television, financial as well as other services to operators outside its footprint. Co. also provides a range of enterprise products and services including total communications such as mobile, fixed and a suite of converged communications services, internet of things, cloud and hosting and carrier services.
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