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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.63
VG's Cash to Debt is ranked higher than
75% of the 800 Companies
in the Global Telecom Services industry.

( Industry Median: 0.40 vs. VG: 0.63 )
VG' s 10-Year Cash to Debt Range
Min: 0.13   Max: 21153.6
Current: 0.63

0.13
21153.6
Equity to Asset 0.53
VG's Equity to Asset is ranked higher than
82% of the 792 Companies
in the Global Telecom Services industry.

( Industry Median: 0.40 vs. VG: 0.53 )
VG' s 10-Year Equity to Asset Range
Min: -0.5   Max: 0.72
Current: 0.53

-0.5
0.72
Interest Coverage 7.98
VG's Interest Coverage is ranked higher than
76% of the 563 Companies
in the Global Telecom Services industry.

( Industry Median: 7.26 vs. VG: 7.98 )
VG' s 10-Year Interest Coverage Range
Min: 1.06   Max: 9999.99
Current: 7.98

1.06
9999.99
F-Score: 6
Z-Score: 1.51
M-Score: -2.99
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 4/10

vs
industry
vs
history
Operating margin (%) 6.31
VG's Operating margin (%) is ranked higher than
71% of the 788 Companies
in the Global Telecom Services industry.

( Industry Median: 12.85 vs. VG: 6.31 )
VG' s 10-Year Operating margin (%) Range
Min: -1279.71   Max: 13.37
Current: 6.31

-1279.71
13.37
Net-margin (%) 3.41
VG's Net-margin (%) is ranked higher than
72% of the 788 Companies
in the Global Telecom Services industry.

( Industry Median: 6.98 vs. VG: 3.41 )
VG' s 10-Year Net-margin (%) Range
Min: -1312.26   Max: 47
Current: 3.41

-1312.26
47
ROE (%) 8.37
VG's ROE (%) is ranked higher than
75% of the 762 Companies
in the Global Telecom Services industry.

( Industry Median: 12.18 vs. VG: 8.37 )
VG' s 10-Year ROE (%) Range
Min: -1310.47   Max: 136.55
Current: 8.37

-1310.47
136.55
ROA (%) 4.40
VG's ROA (%) is ranked higher than
77% of the 792 Companies
in the Global Telecom Services industry.

( Industry Median: 4.69 vs. VG: 4.40 )
VG' s 10-Year ROA (%) Range
Min: -122.36   Max: 72.24
Current: 4.4

-122.36
72.24
ROC (Joel Greenblatt) (%) 100.20
VG's ROC (Joel Greenblatt) (%) is ranked higher than
94% of the 784 Companies
in the Global Telecom Services industry.

( Industry Median: 22.49 vs. VG: 100.20 )
VG' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -467.02   Max: 171.16
Current: 100.2

-467.02
171.16
Revenue Growth (%) -3.80
VG's Revenue Growth (%) is ranked higher than
71% of the 680 Companies
in the Global Telecom Services industry.

( Industry Median: 3.70 vs. VG: -3.80 )
VG' s 10-Year Revenue Growth (%) Range
Min: 0   Max: 559.4
Current: -3.8

0
559.4
EBITDA Growth (%) 64.40
VG's EBITDA Growth (%) is ranked higher than
97% of the 606 Companies
in the Global Telecom Services industry.

( Industry Median: 1.70 vs. VG: 64.40 )
VG' s 10-Year EBITDA Growth (%) Range
Min: 0   Max: 174.4
Current: 64.4

0
174.4
» VG's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

VG Guru Trades in Q1 2013

Chuck Royce 150,000 sh (New)
Jim Simons 6,637,616 sh (New)
Steven Cohen Sold Out
Joel Greenblatt 779,035 sh (-12.53%)
Paul Tudor Jones 81,900 sh (-39.06%)
Whitney Tilson 110,000 sh (-71.43%)
Zeke Ashton 140,000 sh (-75.86%)
» More
Q2 2013

VG Guru Trades in Q2 2013

Steven Cohen 37,452 sh (New)
Jim Simons 7,173,119 sh (+8.07%)
Joel Greenblatt 795,238 sh (+2.08%)
Chuck Royce Sold Out
Zeke Ashton Sold Out
Paul Tudor Jones Sold Out
Whitney Tilson Sold Out
» More
Q3 2013

VG Guru Trades in Q3 2013

Jeremy Grantham 32,772 sh (New)
Paul Tudor Jones 40,600 sh (New)
Steven Cohen 55,405 sh (+47.94%)
Jim Simons 8,857,800 sh (+23.49%)
Joel Greenblatt 121,281 sh (-84.75%)
» More
Q4 2013

VG Guru Trades in Q4 2013

Paul Tudor Jones 76,099 sh (+87.44%)
Steven Cohen 102,295 sh (+84.63%)
Jeremy Grantham 59,672 sh (+82.08%)
Jim Simons 9,892,293 sh (+11.68%)
Joel Greenblatt 61,823 sh (-49.02%)
» More
» Details

Insider Trades

Latest Guru Trades with VG

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2013-12-31 Reduce -49.02%0.01%$3.05 - $3.88 $ 4.0219%61823
Joel Greenblatt 2013-09-30 Reduce -84.75%0.08%$2.78 - $3.4 $ 4.0228%121281
Joel Greenblatt 2012-06-30 Add 39.52%0.03%$1.68 - $2.24 $ 4.02112%798412
Joel Greenblatt 2012-03-31 Add 112.1%0.06%$2.15 - $3.07 $ 4.0279%572253
Joel Greenblatt 2011-12-31 Add 30.44%0.02%$2.14 - $3.41 $ 4.0251%269806
Joel Greenblatt 2011-09-30 Add 27.31%0.02%$2.61 - $4.78 $ 4.0214%206850
George Soros 2011-06-30 Sold Out $3.99 - $5.25 $ 4.02-14%0
Joel Greenblatt 2011-03-31 Add 35.4%0.07%$2.24 - $4.64 $ 4.028%202085
George Soros 2011-03-31 New Buy$2.24 - $4.64 $ 4.028%61500
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Ratios

vs
industry
vs
history
P/E(ttm) 31.70
VG's P/E(ttm) is ranked higher than
56% of the 642 Companies
in the Global Telecom Services industry.

( Industry Median: 16.30 vs. VG: 31.70 )
VG' s 10-Year P/E(ttm) Range
Min: 1.01   Max: 60.89
Current: 31.7

1.01
60.89
P/B 2.40
VG's P/B is ranked higher than
68% of the 728 Companies
in the Global Telecom Services industry.

( Industry Median: 2.26 vs. VG: 2.40 )
VG' s 10-Year P/B Range
Min: 1.18   Max: 6.87
Current: 2.4

1.18
6.87
P/S 1.07
VG's P/S is ranked higher than
72% of the 822 Companies
in the Global Telecom Services industry.

( Industry Median: 1.46 vs. VG: 1.07 )
VG' s 10-Year P/S Range
Min: 0.03   Max: 1.29
Current: 1.07

0.03
1.29
PFCF 13.40
VG's PFCF is ranked higher than
76% of the 519 Companies
in the Global Telecom Services industry.

( Industry Median: 15.86 vs. VG: 13.40 )
VG' s 10-Year PFCF Range
Min: 3.15   Max: 15.37
Current: 13.4

3.15
15.37
EV-to-EBIT 17.50
VG's EV-to-EBIT is ranked higher than
58% of the 711 Companies
in the Global Telecom Services industry.

( Industry Median: 14.25 vs. VG: 17.50 )
VG' s 10-Year EV-to-EBIT Range
Min: 4   Max: 31.7
Current: 17.5

4
31.7
PEG 1.90
VG's PEG is ranked higher than
75% of the 406 Companies
in the Global Telecom Services industry.

( Industry Median: 2.58 vs. VG: 1.90 )
VG' s 10-Year PEG Range
Min: 0.43   Max: 1.9
Current: 1.9

0.43
1.9
Shiller P/E 27.50
VG's Shiller P/E is ranked higher than
53% of the 482 Companies
in the Global Telecom Services industry.

( Industry Median: 15.99 vs. VG: 27.50 )
VG' s 10-Year Shiller P/E Range
Min: 21.33   Max: 30.73
Current: 27.5

21.33
30.73

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 5.40
VG's Price/Tangible Book is ranked lower than
52% of the 506 Companies
in the Global Telecom Services industry.

( Industry Median: 3.30 vs. VG: 5.40 )
VG' s 10-Year Price/Tangible Book Range
Min: 1.73   Max: 6.03
Current: 5.4

1.73
6.03
Price/DCF (Projected) 1.00
VG's Price/DCF (Projected) is ranked higher than
76% of the 495 Companies
in the Global Telecom Services industry.

( Industry Median: 0.90 vs. VG: 1.00 )
VG' s 10-Year Price/DCF (Projected) Range
Min: 0.82   Max: 2.19
Current: 1

0.82
2.19
Price/Median PS Value 2.00
VG's Price/Median PS Value is ranked lower than
57% of the 736 Companies
in the Global Telecom Services industry.

( Industry Median: 1.00 vs. VG: 2.00 )
VG' s 10-Year Price/Median PS Value Range
Min: 0.15   Max: 1.69
Current: 2

0.15
1.69
Price/Peter Lynch Fair Value 1.20
VG's Price/Peter Lynch Fair Value is ranked higher than
60% of the 210 Companies
in the Global Telecom Services industry.

( Industry Median: 1.00 vs. VG: 1.20 )
VG' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1.02   Max: 1.02
Current: 1.2

Price/Graham Number 2.70
VG's Price/Graham Number is ranked higher than
51% of the 429 Companies
in the Global Telecom Services industry.

( Industry Median: 1.80 vs. VG: 2.70 )
VG' s 10-Year Price/Graham Number Range
Min: 0.37   Max: 2.25
Current: 2.7

0.37
2.25
Earnings Yield (Greenblatt) 5.70
VG's Earnings Yield (Greenblatt) is ranked higher than
65% of the 716 Companies
in the Global Telecom Services industry.

( Industry Median: 7.00 vs. VG: 5.70 )
VG' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3.2   Max: 25.1
Current: 5.7

3.2
25.1
Forward Rate of Return (Yacktman) 30.81
VG's Forward Rate of Return (Yacktman) is ranked higher than
95% of the 623 Companies
in the Global Telecom Services industry.

( Industry Median: 8.96 vs. VG: 30.81 )
VG' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -17538.2   Max: 30.8
Current: 30.81

-17538.2
30.8

Business Description

Industry: Communication Services » Telecom Services
Compare:CHU, VOD, T, VZ, AMOV » details
Traded in other countries:V1Y.Germany
Vonage Holdings Corp. was incorporated in Delaware in May 2000. The Company is a provider of broadband Voice over Internet Protocol (VoIP) telephone services to residential and small office and home office customers. It launched service in the United States in October 2002, in Canada in November 2004 and in the United Kingdom in May 2005. It is a pure-play provider of broadband telephone services to residential and small office and home office customers with over 2.6 million subscriber lines as of December 31, 2008. While customers in the United States represented 95% of its subscriber lines in 2008, it continues to serve customers internationally with services in Canada and the United Kingdom. The Company's service is portable and it enables its customers to make and receive phone calls with a telephone almost anywhere a broadband Internet connection is available. It transmits these calls using Voice over Internet Protocol, or VoIP, technology, which converts voice signals into digital data packets for transmission over the Internet. At a cost effective rate, each of its calling plans provides a number of basic features typically offered by traditional telephone service providers, plus a range of enhanced features that differentiate its service and offers an attractive value proposition to its customers. The Company also offers a number of premium services for additional costs. It has developed both a direct sales channel, as represented by web sites and toll free numbers, and a retail distribution channel through national retailers including Best Buy and Wal-Mart. The direct and retail distribution channels are supported through highly integrated advertising campaigns across multiple media such as online, television, direct mail, alternative media, telemarketing, partner marketing and customer referral programs. The Company offers its broadband telephone services to customers through a number of service plans with different pricing structures. All of its service plans include an array of both basic and enhanced features, and customers have the opportunity to purchase a number of premium features at an additional fee. In order to access its service, a customer need only connect a standard telephone to a broadband Internet connection through a small Vonage-enabled device. After connecting the device, its customers could use their telephone to make and receive calls. The Company faces competition from incumbent telephone companies, cable companies, alternative voice communication providers and wireless companies. The main competitive factors affecting its ability to attract and retain customers are price, call quality, reliability, customer service and enhanced services and features. The Company has been involved in a considerable amount of state and federal regulatory activity.

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