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From end-2013 till early 2025, the Vodafone Group (LSE: VOD) share worth fell nearly relentlessly. Yr after 12 months, Vodafone’s homeowners noticed their shareholdings decline steeply in worth. In the end, it seems to be like inventory on this British telecoms large is staging a critical comeback…
Unstable Vodafone
Manner again in December 2013, Vodafone shares had been buying and selling near £3. However that marked a distant excessive for this common and broadly held inventory, which then set off on multi-year declines.
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On 9 April 2025, the Vodafone share worth hit a low of 62.4p, down round 80% from its 2013 excessive. Repeatedly throughout final 12 months, I argued that this FTSE 100 agency was undervalued, unloved, and due a valuation re-rating.
For the report, my household portfolio owns shares in Vodafone. We paid 90.2p a share for our stake in December 2022, solely to observe as the worth stored discovering decrease lows.
Nevertheless, over the previous 12 months, somebody lit a match underneath this Footsie inventory, sending it hovering like a rocket. As I write on Tuesday afternoon (5 Could), the share worth stands at 115.85p. This values the group at £26.7bn — near twice its April 2025 lows.
What revived this inventory?
Over one 12 months, the Vodafone share worth has surged by 58.8%. That stated, the shares are down 18.3% over 5 years — a touch of the ache suffered by long-standing shareholders. (Each figures exclude money dividends, which have been very beneficiant from this inventory.)
For me, a lot of the restoration within the group’s latest fortunes will be attributed to Margherita Della Valle, who took over as everlasting CEO in April 2023. Her turnaround technique targeted on promoting non-core belongings to lift money. Vodafone has used these proceeds to spend money on core markets, in addition to shopping for again its personal low cost shares.
Della Valle additionally grasped the nettle by tackling the group’s sky-high dividend yield (which reached double digits at instances). In Could 2024, Vodafone halved its yearly money payout from 9 euro cents to 4.5 euro cents from 2025 onwards.
Huge deal!
Vodafone unveiled its newest company transfer on Tuesday. The group is to pay £4.3bn to purchase companion CK Hutchison’s 49% stake of their VodafoneThree three way partnership. The Hong Kong-based conglomerate is elevating big sums from asset disposals in 2025/26.
This would go away Vodafone in full management of VodafoneThree, making it high canine of the UK’s three mobile-network operators. The transaction values this enterprise at almost £13.9bn — greater than half of Vodafone’s present market capitalisation. The deal is about to be accomplished within the second half of this 12 months.
It’s good to see Vodafone’s ship lastly settling after years of crusing tough seas. I’m hopeful that this newest deal will show optimistic for shareholders. If I’m proper, then the share worth might shoot previous the 120.95p excessive hit on 18 February, earlier than the US-Iran battle despatched inventory markets tumbling.
For now, I’m comfortable to sit down again and maintain maintain of our Vodafone inventory, banking the near-3.4% yearly dividend yield whereas we wait. Plus there’s underneath every week earlier than the half-year outcomes on 12 Could!
