Vodafone Group Public Limited Company (VOD): A Bull Case Theory

Core Thesis - Vodafone Group Public Limited Company is perceived as a low-growth telecom company despite having significant asset value, including a 45% stake in tower and infrastructure assets worth approximately $10 billion [2] Valuation and Market Perception - Vodafone's share price was $13.18 as of January 13, with trailing and forward P/E ratios of 20.37 and 37.45 respectively [1] - The market continues to price Vodafone as a "boring" income stock, with a stock price of 96p as of December 23, 2025, reflecting no credible growth options [3] Growth Opportunities - Vodafone's exposure to AST SpaceMobile and its European joint venture, Sat-co, could represent significant growth potential, which is largely ignored in current valuations [3][4] - AST SpaceMobile's equity has increased significantly, now exceeding Vodafone's market capitalization, with Vodafone holding 14.5 million shares worth approximately $1.2 billion [4] Strategic Importance of Sat-co - Sat-co aims to provide direct-to-device broadband and voice connectivity across Europe using AST's LEO satellites, which could eliminate coverage gaps without new hardware [4] - Full European coverage is expected by the end of 2026, with interest from mobile operators in 21 EU countries [5] - The strategic importance of Sat-co is enhanced by upcoming European S-band spectrum allocation and rising defense spending, positioning Vodafone favorably against competitors like Starlink [6] Financial Impact - If Sat-co generates over €1 billion in incremental EBITDA for Vodafone, it could significantly improve earnings growth, quality, and free cash flow, potentially leading to a re-rating of Vodafone's valuation multiples [6]