Vodafone Share Price Analysis: A Detailed Look at Current Trends

Vodafone share price today rose 0.34% to 70.88 British pence, the whole stock market had a good day, with the FTSE 100 Index UKX advancing a quarter of a per cent to 8,204.89. The company closed 11.68 pence short of its 52-week high of 82.56 pence, which it reached on the 22nd of September.

Vodafone is a leading provider of cellular networks. The company currently offers calls, messaging, and data services over wired and mobile networks. It is also one of the businesses of cloud, insurance products, the carrier, which is a unified communication, payment, digital service, financial service, cybersecurity, and IoT service. However, the rapid shift towards digital and over-the-top (OTT) services has challenged traditional telecommunication providers.

Vodafone Stock: Poised for a Bullish Breakout 

The lowest Vodafone stock price was 59.75p at the beginning of this year and has surged to its current value of 71p, which is an increase of nearly 20%. The stock price rested at the 23.6% Fibonacci Retracement. Besides, the course of events was also marked by a golden cross pattern when the 200-day and 50-day moving averages crossover in a bullish manner. Additionally, it created a falling wedge pattern, which is a high-profile bullish segment.

Consequently, the stock price should experience a bullish breakout, although its buyers are always after the 50% retracement point, which is 86p, 21% more than the current level.

Should You Choose Vodafone vs Lloyds to Invest In?

Lloyds Banking Group plc, a major British financial institution, should earn 6.2p per share in the fiscal year ended 31 December (FY24). This results in a current price-to-earnings (P/E) ratio of 9.35. In 2025, FY25, and FY26, the forward earnings multiple is 7.73 and 6.37, respectively. Broader market trends and investor sentiment influence the share prices of both Lloyds and Vodafone, making these prominent UK-based companies comparable in terms of market behavior.

Experts estimate Vodafone’s earnings per share for the year ending March 2025 (FY25) to be 6.85p. With a stock price of 70p, the P/E ratio is currently at 10.2. EPS should go up to 8.38 and 9.01p in FY26 and FY27, respectively. This signals a forward P/E ratio range of 8.35-7.77.

When a company’s earnings exceed the dividend price, the result is a differential amount, making it difficult to choose between them. Vodafone has been affected by a 50% dividend cut it announced. The implied yield of 5.4% when the company pays a 4.5-euro cent (3.81p) boost indicates that it is still quite profitable. However, even if the current figures look good, the yield was 10% just a few months ago.

In 2024, Lloyds is estimated to give back 3p per share, which is 8.7% more than what it gave back in FY23. This results in a yield of 5.1% for the banking stock. While Vodafone’s balance sheet and price-to-earnings ratio shows its potential, Lloyds stands out with its consistent profitability and higher yield.

Vodafone Share Price LSE Today

Vodafone (LSE: VOD) is a part of the FTSE All-Share, FTSE 350 High Yield, FTSE 350, and FTSE 100 indices.

The stock is just 0.2% up to date with the year. Its price decreased by 2.7% for the past year. Nevertheless, the telecommunications giant experienced a complete loss of 45.9% of its value over the past five years. And with its recovery strategy in progress, the company can easily gain new stakeholders.

The company is continuously extending its operations after selling out its Spanish and even Italian branches at €5bn and €8bn correspondingly. They also have lots of room for innovation in the regions that have potential, such as Africa.

Why is Vodafone Share Price so Low?

Vodafone’s stock continues to experience losses unhindered at this time, remaining confined in a range of 65-75p.

Even though its shares were 7% lower than in July 2023, looking back at July 2023 the value drop of its shares is -7%. Since July 2019, they have plummeted by an astonishing amount of 48%. Vodafone once held the title of the UK’s most valuable listed company. This is hard to believe at times.

Deutsche Telekom, the largest telecommunications company in Europe, cannot say the same thing. Their stock price has increased by 50% in the last half a decade.

Vodafone recently sold a piece of its Spanish business and is now talking to a party about the potential sale of its own Italian division. However, analysts have not included this, and they forecast EBITDA will be approximately €10.9bn for the year ending 31 March 2025 (FY25).

Vodafone Share Price Forecast

Vodafone share price has been in a range for the last few days, where the investors are sitting waiting on the company’s trading update which is due for release on the 25th of July. The company’s shares closed at 71p on Tuesday, at which it had lingered for the past couple of days. This price is a good 18% above the lowest point of the price this year.

Meanwhile, Deutsche Telekom should record a profit of €42.8bn or £36.3bn in 2024.

Once these numbers turn out the right way, it signs the exact worth of the companies being at 2 and 2.73 of their earnings respectively.

In theory, the mean target price for this is 93.67p, with a high forecast of 140.00p and a low forecast of 65.00p. The average target price is 33.21% different from the last price of 70.32p.

Will the Vodafone Share Price Keep Falling?

The forecasts put the growing percentage at 17.22% for each year. The fact that market will do very well provided this prediction comes true. On the other hand, several danger signals have been pointed out.

The 80.1% Vodafone’s debt-to-equity ratio is troubling. This shows that the company is in a lot of debt and, therefore cannot have much financial flexibility as well as the balance sheet is highly vulnerable to stock market changes. Besides that, profit margins (3.3%) are much less than the previous year’s (32.1%), betraying a potential implementation error or market-sourced pressure.

Over the past year, Vodafone’s stock has been the worst performer compared to both its peers within the same industry and the entire broad market in the UK. The stock has fallen by 1.5% over 12 months, a gain of 6.2% for the UK wireless telecoms industry and an 8.1% appreciation of the overall UK market.

Even though Vodafone’s share price has been facing numerous problems, the future is the same uncertain reality for interested people. The very high dividend yield still is not sustainable, though it is a tempting feature. It is the company’s great size and the fact that it can grow in the future that will give us hope; however, this is offset by high debt levels and margin pressures.