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Vodafone Idea Ltd
BSE:532822

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Vodafone Idea Ltd
BSE:532822
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Price: 10.22 INR -0.68% Market Closed
Market Cap: ₹712.3B

EV/GP

14.8
Current
15%
More Expensive
vs 3-y average of 12.9

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
14.8
=
Enterprise Value
₹3.2T
/
Gross Profit
₹220.1B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
14.8
=
Enterprise Value
₹3.2T
/
Gross Profit
₹220.1B

Valuation Scenarios

Vodafone Idea Ltd is trading above its 3-year average

If EV/GP returns to its 3-Year Average (12.9), the stock would be worth ₹8.91 (13% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-56%
Maximum Upside
No Upside Scenarios
Average Downside
31%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 14.8 ₹10.22
0%
3-Year Average 12.9 ₹8.91
-13%
5-Year Average 12.1 ₹8.38
-18%
Industry Average 9.3 ₹6.4
-37%
Country Average 6.5 ₹4.53
-56%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close
Market Cap EV/GP P/E
IN
Vodafone Idea Ltd
BSE:532822
1.1T INR 14.8 -4.5
ZA
MTN Group Ltd
JSE:MTN
383.1B ZAR 2.1 18.9
ZA
Vodacom Group Ltd
JSE:VOD
273B ZAR 3 14.5
US
T-Mobile US Inc
NASDAQ:TMUS
216.4B USD 5.3 19.8
JP
SoftBank Group Corp
TSE:9984
30.9T JPY 11.8 8.4
CN
China Mobile Ltd
SSE:600941
1.3T CNY 3.6 9.7
IN
Bharti Airtel Ltd
NSE:BHARTIARTL
10.8T INR 8.2 35.3
MX
America Movil SAB de CV
BMV:AMXB
1.4T MXN 4.6 15.9
JP
SoftBank Corp
TSE:9434
10.5T JPY 4.2 18.6
JP
KDDI Corp
TSE:9433
9.7T JPY 4.6 14
UK
Vodafone Group PLC
LSE:VOD
28.1B GBP 5 -7.4
P/E Multiple
Earnings Growth PEG
IN
V
Vodafone Idea Ltd
BSE:532822
Average P/E: 17.2
Negative Multiple: -4.5
N/A N/A
ZA
M
MTN Group Ltd
JSE:MTN
18.9
41%
0.5
ZA
V
Vodacom Group Ltd
JSE:VOD
14.5
19%
0.8
US
T-Mobile US Inc
NASDAQ:TMUS
19.8
19%
1
JP
SoftBank Group Corp
TSE:9984
8.4
-10%
N/A
CN
China Mobile Ltd
SSE:600941
9.7
3%
3.2
IN
Bharti Airtel Ltd
NSE:BHARTIARTL
35.3
16%
2.2
MX
America Movil SAB de CV
BMV:AMXB
15.9
21%
0.8
JP
SoftBank Corp
TSE:9434
18.6
7%
2.7
JP
KDDI Corp
TSE:9433
14
11%
1.3
UK
Vodafone Group PLC
LSE:VOD
Negative Multiple: -7.4 N/A N/A

Market Distribution

Higher than 74% of companies in India
Percentile
74th
Based on 2 475 companies
74th percentile
12.5
Low
0.2 — 4.1
Typical Range
4.1 — 10.8
High
10.8 —
Distribution Statistics
India
Min 0.2
30th Percentile 4.1
Median 6.5
70th Percentile 10.8
Max 34 392.2

Vodafone Idea Ltd
Glance View

Vodafone Idea Ltd., born from the 2018 merger of two telecom giants, Vodafone India and Idea Cellular, represents a pivotal chapter in India's telecommunications narrative. Facing intense competition from nimble rivals like Reliance Jio, the merger was a strategic move to leverage strengths and navigate the turbulent landscape of mobile network services. Seated at the crux of a rapidly digitizing India, Vodafone Idea operates by providing a spectrum of services ranging from voice to high-speed data. With a focus on enhancing digital experiences, it caters to diverse customer needs—from smartphone users demanding seamless video streaming to businesses seeking robust enterprise connectivity solutions. Revenue flows into Vodafone Idea primarily through subscription fees for its myriad services, which include prepaid and postpaid mobile plans, broadband services, and enterprise offerings. The company has also strategically tapped into the digital solutions market, supporting the massive consumer base’s transition to smart solutions and the Internet of Things (IoT). This constellation of services is supported by an expansive network infrastructure that requires substantial investment and innovation. However, the company has faced significant financial hurdles, grappling with staggering debts and regulatory challenges in a high-stakes environment. Despite these pressures, Vodafone Idea continues to strategize on cost optimization and technological advancements to maintain its foothold in one of the world's fastest-growing telecom markets.

IDEA Intrinsic Value
15.76 INR
Undervaluation 35%
Intrinsic Value
Price ₹10.22
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