Vodafone GroupLSE:VOD +12.62%49 Return-on-Tangible-Equity is -15.76% as of Mar. 2026. GuruFocus rates LSE:VOD with a GF Score™ of 49/100 and a GF Value™ of £0.96 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 325 Telecommunication Services companies, Vodafone Group ranks worse than 81.54% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Vodafone Group's annualized net income for the quarter that ended in Mar. 2026 was £-2,126 Mil. Vodafone Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was £13,489 Mil. Therefore, Vodafone Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -15.76%.
The historical rank and industry rank for Vodafone Group's Return-on-Tangible-Equity or its related term are showing as below:
LSE:VOD'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -34.63 Med: -0.61 Max: 134.14
Current: -2.39
During the past 13 years, Vodafone Group's highest Return-on-Tangible-Equity was 134.14%. The lowest was -34.63%. And the median was -0.61%.
LSE:VOD's Return-on-Tangible-Equity is ranked worse than 81.54% of 325
companies
in the Telecommunication Services industry
Industry Median: 14.53
vs LSE:VOD: -2.39
Vodafone Group (LSE:VOD) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Vodafone Group Return-on-Tangible-Equity Related Terms
Vodafone Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Vodafone Group's Return-on-Tangible-Equity 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.
LSE:VOD vs TMUS, VZ, T: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, Vodafone Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
Vodafone Group Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Vodafone Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Vodafone Group's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -15.76% mean?
Vodafone Group (LSE:VOD) has a Return-on-Tangible-Equity of -15.76% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Vodafone Group and its competitors. According to the industry distribution chart, Vodafone Group ranks #265 out of 325 companies in the Telecommunication Services industry, placing it in the top 81.5%.
Is Vodafone Group's Return-on-Tangible-Equity too high?
Vodafone Group's current Return-on-Tangible-Equity is -15.76%. Based on the distribution chart, Vodafone Group ranks #265 out of 325 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, Vodafone Group has a GF Score™ of 49/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vodafone Group's Return-on-Tangible-Equity compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Vodafone Group ranks #265 out of 325 companies for Return-on-Tangible-Equity. This places Vodafone Group in the lower half of its industry. The industry median Return-on-Tangible-Equity is 14.53. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 14.53, based on 325 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Vodafone Group and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 14.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vodafone Group's current Return-on-Tangible-Equity is -15.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vodafone Group stock overvalued right now?
Based on GuruFocus' analysis, Vodafone Group (LSE:VOD) is currently considered Modestly Overvalued. The stock's GF Value™ is £0.96, compared to a current price of £1.10 — trading 14.7% above its estimated fair value. The current Return-on-Tangible-Equity is -15.76%. Vodafone Group's overall GF Score™ is 49/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Vodafone Group (LSE:VOD), the current Return-on-Tangible-Equity is -15.76% 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 Vodafone Group (LSE:VOD) Overvalued in 2026?
Based on GuruFocus' analysis, Vodafone Group stock appears to be overvalued.
The current stock price of £1.10 is trading 14.7% above its estimated GF Value™ of £0.96.
GuruFocus considers Vodafone Group to be Modestly Overvalued.
Key valuation signals for LSE:VOD:
Return-on-Tangible-Equity: -15.76%
GF Value™: £0.96 vs. price of £1.10 (14.7% above fair value)
No single metric tells the full story. See the LSE:VOD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vodafone operates mobile and fixed-line networks and businesses across Europe, Africa, and the Middle East. Its largest market is Germany, where it is the second mobile operator after Deutsche Telekom and owns two cable networks after acquiring Kabel Deutschland in 2013 and Liberty Global Germany in 2019. In the UK, Vodafone merged with CK Hutchison in 2024, consolidating the mobile market. It also divested its Spanish and Italian divisions in that same year, given their low returns on invested capital.
49GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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