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Vodafone Group Plc Message Board

  • grrl025 grrl025 Apr 24, 2013 11:57 PM Flag

    What if VOD loses VZ wireless deal?

    What will happens to our share price?

    Sentiment: Hold

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    • VZ will cut the dividend to VOD and you will see the stock price fall to the low $20 level.

      • 1 Reply to low_mac
      • Not. LOL Just as Einhorn indicates, the market is giving next to no value for VOD's stake in VZ. Check Einhorn's numbers placing the rest of VODs operation (outside its VZW stake) at a minimum of 100B on a 10X multiple but indicated 12X is more appropriate for the balance of VOD's operations given the rest of the industries assigned multiples on FCF. Basically no value given for VODs ownership stake in VZ....and if you use forward earnings values to assign a modest 10X multiple on for the VZ ownership....we are talking something between a 280 - 300B market cap for VOD which is currently tapping against 150B. However, I don't know if you can use the full value in VZW like VZ shares reflect but if you did..... VOD stupid cheap. If VZ doesn't want to pay up then bring on the fat new cash flow from the VZW holding now that the debt is cleaned out.

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