Vodacom GroupVODAF 78 Return-on-Tangible-Equity is 39.29% as of Mar. 2026, which is 49% above its 10-year median of 26.30. GuruFocus rates VODAF with a GF Score™ of 78/100 and a GF Value™ of $8.85 (Fairly Valued). The stock has 5 warning signs investors should review. Among 327 Telecommunication Services companies, Vodacom Group ranks better than 65.14% 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. Vodacom Group's annualized net income for the quarter that ended in Mar. 2026 was $1,378 Mil. Vodacom Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $3,507 Mil. Therefore, Vodacom Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 39.29%.
The historical rank and industry rank for Vodacom Group's Return-on-Tangible-Equity or its related term are showing as below:
VODAF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 21.93 Med: 26.3 Max: 90.91
Current: 34.04
During the past 13 years, Vodacom Group's highest Return-on-Tangible-Equity was 90.91%. The lowest was 21.93%. And the median was 26.30%.
VODAF's Return-on-Tangible-Equity is ranked better than 65.14% of 327
companies
in the Telecommunication Services industry
Industry Median: 13.99
vs VODAF: 34.04
Vodacom Group (OTCPK:VODAF) 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.
Vodacom Group Return-on-Tangible-Equity Related Terms
Vodacom Group Return-on-Tangible-Equity Historical Data
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The historical data trend for Vodacom 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.
VODAF vs TMUS, VZ, T: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, Vodacom 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.
Vodacom Group Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Vodacom Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Vodacom 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 39.29% mean?
Vodacom Group (VODAF) has a Return-on-Tangible-Equity of 39.29% 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 Vodacom Group and its competitors. This is 49% above median its historical median of 26.30. Over the past decade, Vodacom Group's Return-on-Tangible-Equity has ranged from 21.93 to 90.91. According to the industry distribution chart, Vodacom Group ranks #114 out of 327 companies in the Telecommunication Services industry, placing it in the top 34.9%.
Is Vodacom Group's Return-on-Tangible-Equity too high?
Vodacom Group's current Return-on-Tangible-Equity of 39.29% is 49% above median its 10-year median of 26.30. Over the past 10 years, this metric has ranged from a low of 21.93 to a high of 90.91. The Telecommunication Services industry median Return-on-Tangible-Equity is 13.99. Vodacom Group's value of 39.29% is 180.8% above this industry median. Based on the distribution chart, Vodacom Group ranks #114 out of 327 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Vodacom Group has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Vodacom Group's Return-on-Tangible-Equity compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Vodacom Group ranks #114 out of 327 companies for Return-on-Tangible-Equity. This puts Vodacom Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 13.99. Vodacom Group's value of 39.29% is 180.8% above this benchmark. Historically, Vodacom Group's own Return-on-Tangible-Equity has ranged from 21.93 to 90.91 over the past decade. While the company's 10-year median is 26.30 vs. the industry median of 13.99, 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 Return-on-Tangible-Equity for a Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 13.99, based on 327 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. Vodacom Group's current Return-on-Tangible-Equity of 39.29% is 180.8% 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 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 Vodacom Group and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 13.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vodacom Group's current Return-on-Tangible-Equity is 39.29%, which is 49% above median its own 10-year median of 26.30. 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 (VODAF) is currently considered Fairly Valued. The stock's GF Value™ is $8.85, compared to a current price of $8.98 — trading 1.5% above its estimated fair value. The current Return-on-Tangible-Equity is 39.29%, which is 49% above median its 10-year median of 26.30 and 180.8% above the Telecommunication Services industry median of 13.99. Vodacom Group's overall GF Score™ is 78/100 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 Vodacom Group (VODAF), the current Return-on-Tangible-Equity is 39.29% 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 (VODAF) Overvalued in 2026?
Based on GuruFocus' analysis, Vodacom Group stock appears to be overvalued.
The current stock price of $8.98 is trading 1.5% above its estimated GF Value™ of $8.85.
GuruFocus considers Vodacom Group to be Fairly Valued.
Key valuation signals for VODAF:
Return-on-Tangible-Equity: 39.29% (49% above median its 10-year median of 26.30)
GF Value™: $8.85 vs. price of $8.98 (1.5% above fair value)
Industry Position: 180.8% above the Telecommunication Services median (#114 of 327)
No single metric tells the full story. See the VODAF 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.
78GF Score
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