Member Info for longtimeinvestor

Vodafone is currently trading on a price to book ratio of about 0.37.

I believe that the ratio got to about 1.25 in 2014, so on that measure it would appear that Vodafone is at a very low valuation - excellent for the over 2 Billion buyback spend still to come.

For info - an RNS was released stating that 4 Billion Euro was going to be invested in buying back Vodafone shares - the share price traded between about 67.5p at open to a little below 70p at close on that day.

The market cap valuation after getting nearer to the end of the first 2 Billion spend, in the investment of Vod shares is about the same now as it was on the 15th March 2024.

Dan

I think you will find that it is YOU with the problem - irrational response after facts are given to you which were -

'The sole purpose of buybacks is to reduce share capital.

The market determines the valuation of Vodafone on a daily basis.

The price per share would increase with a reduction in share capital, so long as there is not a reduced market valuation of the business.'

Maybe you can get to sort out your issues, otherwise you will deteriorate

Dan

and if people continue talking about the buyback increasing the share price, then the required response may be posted again, which is -

'The sole purpose of buybacks is to reduce share capital.

The market determines the valuation of Vodafone on a daily basis.

The price per share would increase with a reduction in share capital, so long as there is not a reduced market valuation of the business.'

Let that sink in - it is not hard to comprehend

Dan

'' but there is reduced valuation of the business equal to the money spent by vod to buy back the shares. it is not rocket science''

Yet again you show yourself up and I am sure there will be others that believe that tripe. If that were the case then the valuation would be reducing by 4 Billion by the time that the investment in VOD shares is completed. Assets are being purchased the value of which are split between the remaining shares, resulting in a bigger slice of the business for investors keeping their shares. Vodafones valuation by the market is based on current profitability and prospective future profitability. Nonperforming assets were sold in order to make an investment in Vod shares. It is a return to shareholders.Book value per share would increase if purchased under book value.

''Assuming that the price-earnings (P/E) multiple at which the stock trades is unchanged, the buyback should eventually result in a higher share price.''

does that sound like a devaluation of 4 Billion.

https://www.investopedia.com/articles/investing/112013/impact-share-repurchases.asp

Dan

you are a clueless dimwit

Dan

fk the right off you complete imbecile.

If people are going to repeat the same nonsense about a buyback pushing up the share price then the same FACTUAL response is required over and over.

Understand? you idiot.

Rob

''doesn't have much confidence in the buybacks increasing the share price ??''

How many more times - it gets extremely tedious.

The sole purpose of buybacks is to reduce share capital.

The market determines the valuation of Vodafone on a daily basis.

The price per share would increase with a reduction in share capital, so long as there is not a reduced market valuation of the business.

Those were the rest of the 65p purchase in Feb - have plenty of 'trading' shares left as well as those keeping for the long term

Aviva reached another 10+ year high

BT reached a 2+ year high

CTY reached another all time high

LGEN reached a 9 month high

LLOY continues to trade at a low valuation

VOD reached a 6 month high

At over 75.6p

Going well since my 208p purchase - always good to get a capital appreciation bonus on top of an excellent dividend yield

Can

''total debt on the BT balance sheet as of September 2023 was £23.59 billion''

A bit out of date don't you think - currently about 15% less than that which also includes lease liabilities .

Share price reached today - great.

High reached today

Vodafone's hybrid bonds attract 50% equity treatment from all three major credit rating agencies (Moody’s, S&P and Fitch).

Rob

The yield at the current price appears to be above the ftse 100 average, so not too bad to hold just for that . A current investor can decide if they can do better elsewhere and so depart.

Rob

''determine what the share price will be in 6 or 12 months time, or if the dividend will be cut or increased''

I am hoping for a low valuation to continue whilst buybacks are taking place as would many institutions. I cannot see the need at this time for a cut in dividend, and I not bothered about an increase, that can wait for an appropriate time - reducing share capital helps, the more the better.

Flec

''So what narrative is that and what is my motivation for presenting the facts? Are you saying the debt figures and maturity dates are wrong?''

there you go again, it is very clear for all to see. Your narrative that te bonds are the reason why the market is valuing Vod so low.

I have said nothing about bonds outstanding figures and expires are wrong - it is of no interest to me - this by the way is your usual deflection that you always do- especially after making things up.

Rob

I am afraid there is no argument.

Flec produces graphs as a way to support his narrative and I have simply said the obvious. Not many investors are interested and that bonds are part of normal corporate activity - simple.

At the same time he dismisses that not all bonds have to be classified as debt, and cannot be bothered to look into it further. When he gets flustered you can clearly see the result - he cannot let it go.

Flec