Vodacom GroupVDMCY -0.11%89 Interest Coverage is 5.06 as of Mar. 2026, which is 6% below its 10-year median of 5.39. GuruFocus rates VDMCY with a GF Score™ of 89/100 and a GF Value™ of $8.49 (Fairly Valued). The stock has 5 warning signs investors should review. Among 286 Telecommunication Services companies, Vodacom Group ranks better than 51.4% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Vodacom Group's
Operating Income
for the
six
months ended in Mar. 2026 was $1,280 Mil. Vodacom Group's Interest Expense for the
six
months ended in Mar. 2026 was $-253 Mil.
Vodacom Group's interest coverage for the quarter that ended in Mar. 2026 was 5.06.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Vodacom Group's Interest Coverage or its related term are showing as below:
VDMCY'
s Interest Coverage Range Over the Past 10 Years
Min: 4.06 Med: 5.39 Max: 8.09
Current: 4.78
VDMCY's Interest Coverage is ranked better than 51.4% of 286
companies
in the Telecommunication Services industry
Industry Median: 4.715
vs VDMCY: 4.78
Vodacom Group (OTCPK:VDMCY) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Vodacom Group Interest Coverage Related Terms
Vodacom Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for Vodacom Group's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
VDMCY vs TMUS, VZ, T: Interest Coverage Comparison
For the Telecom Services subindustry, Vodacom Group's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Vodacom Group Interest Coverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Vodacom Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Vodacom Group's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Vodacom Group (VDMCY) has a Interest Coverage of 5.06 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Vodacom Group and its competitors. This is near median its historical median of 5.39. Over the past decade, Vodacom Group's Interest Coverage has ranged from 4.06 to 8.09. According to the industry distribution chart, Vodacom Group ranks #139 out of 286 companies in the Telecommunication Services industry, placing it in the top 48.6%.
Is Vodacom Group's Interest Coverage too high?
Vodacom Group's current Interest Coverage of 5.06 is near median its 10-year median of 5.39. Over the past 10 years, this metric has ranged from a low of 4.06 to a high of 8.09. The Telecommunication Services industry median Interest Coverage is 4.72. Vodacom Group's value of 5.06 is 7.3% above this industry median. Based on the distribution chart, Vodacom Group ranks #139 out of 286 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Vodacom Group has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Vodacom Group's Interest Coverage compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Vodacom Group ranks #139 out of 286 companies for Interest Coverage. This puts Vodacom Group in the upper half of its industry. The industry median Interest Coverage is 4.72. Vodacom Group's value of 5.06 is 7.3% above this benchmark. Historically, Vodacom Group's own Interest Coverage has ranged from 4.06 to 8.09 over the past decade. While the company's 10-year median is 5.39 vs. the industry median of 4.72, Vodacom Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.72, based on 286 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Vodacom Group's current Interest Coverage of 5.06 is 7.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Vodacom Group and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vodacom Group's current Interest Coverage is 5.06, which is near median its own 10-year median of 5.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vodacom Group stock overvalued right now?
Based on GuruFocus' analysis, Vodacom Group (VDMCY) is currently considered Fairly Valued. The stock's GF Value™ is $8.49, compared to a current price of $9.17 — trading 8% above its estimated fair value. The current Interest Coverage is 5.06, which is near median its 10-year median of 5.39 and 7.3% above the Telecommunication Services industry median of 4.72. Vodacom Group's overall GF Score™ is 89/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Vodacom Group (VDMCY), the current Interest Coverage is 5.06 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Vodacom Group (VDMCY) Overvalued in 2026?
Based on GuruFocus' analysis, Vodacom Group stock appears to be overvalued.
The current stock price of $9.17 is trading 8% above its estimated GF Value™ of $8.49.
GuruFocus considers Vodacom Group to be Fairly Valued.
Key valuation signals for VDMCY:
Interest Coverage: 5.06 (near median its 10-year median of 5.39)
GF Value™: $8.49 vs. price of $9.17 (8% above fair value)
Industry Position: 7.3% above the Telecommunication Services median (#139 of 286)
No single metric tells the full story. See the VDMCY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vodacom Group Ltd is a telecommunications provider. It is engaged in the provision of a wide range of communications products and services including but not limited to voice, messaging, converged services, broadband, data connectivity, mobile financial services and other value added services. Its segments includes South Africa comprises the information relating to the South African-based cellular network and other business segments. Egypt comprises the information relating to the Egyptian-based cellular network and other business segments. International comprises the segment information relating to the non-South African-based cellular networks in Tanzania, Mozambique, Lesotho and the Democratic Republic of Congo. It generates majority of revenue from South Africa.
89GF Score
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