Throughout a variety of metrics, Vodafone‘s (LSE:VOD) share price seems to offer tremendous value right now. In fact, I’d even go as far as to say that — on paper at the very least — I believe the telecoms large could also be one of many FTSE 100‘s biggest worth shares.

Its price-to-earnings (P/E) ratio’s 10.8 instances for the present monetary yr (to March 2026). To place that into perspective, its 10-year common a number of stands considerably greater at round 19 instances.

Moreover, Vodafone’s a number of sits beneath the UK blue-chip common of 11.6 instances. A current dividend re-basement places the dividend yield at 5.5%, beneath a mean of 6.8% for the previous decade. However that’s nonetheless round two proportion factors above the Footsie common.

And eventually, Vodafone shares additionally look low cost based mostly on the corporate’s e book worth (whole belongings/whole liabilities). This sits beneath the extensively accepted worth watermark of 1, at 0.4.

Nonetheless, the enterprise continues to face challenges in key markets, which some might say is pretty mirrored by its rock-bottom valuation. So is the FTSE agency actually a bona fide discount at at this time’s costs?

The bear case

The newest yearly financials this month (20 Might) emphasised the size of Vodafone’s enduring troubles in Germany, its single largest market. Even after investing huge quantities to reinvigorate gross sales, the enterprise remains to be below the cosh after bundling TV companies into multi-dwelling unit (MDU) rents was banned in 2024.

Natural service revenues within the Central European nation sank 5%. But adjustments to bundling legal guidelines are solely half the story — stripping this out, service revenues nonetheless fell 2% within the interval, reflecting “a decrease fastened line buyer base and better aggressive depth within the cellular market“.

The sale of core operations in Spain and Italy has helped considerably carry down Vodafone’s debt. However with troubles in Germany persisting, it’s raised questions too over how the enterprise will generate development.

The bull case

The excellent news is that Might’s report additionally indicated robust performances elsewhere. Natural service revenues development within the UK, Turkey, and the remainder of Europe meant corresponding gross sales at group stage had been up 2%.

In Africa, natural gross sales leapt 11.3% yr on yr as buying and selling impressed in Egypt and South Africa. Africa may stay profitable trying forward amid sturdy inhabitants development and hovering private wealth ranges.

In the meantime, at Vodafone Enterprise — an space which the FTSE firm has recognized as a key money-spinner — natural service revenues elevated 4%.

With the steadiness sheet in a greater place, too (internet debt dropped by a 3rd final yr, to €22.4bn), the corporate’s in a stronger place to put money into its operations throughout these territories.

So what’s the decision?

OK, ‘greatest bargain’ will be fairly subjective. However whereas it’s not with out threat, I believe Vodafone additionally has appreciable long-term funding potential. And I don’t suppose that is proven within the cheapness of its shares.

Reflecting current restructuring, earnings development is tipped to speed up from 5% within the final monetary yr to 10% throughout fiscal 2026. And it’s tipped to choose up additional subsequent yr, to 13%.

I believe Vodafone could possibly be destined for sustained development from this level onwards, as growing digitalisation drives demand for its companies so is price contemplating.