You still need a fair price though, so there is no escaping valuation even if the future is so bright you have to wear shades.
How about a stab at valuation Psy? On my rough reckoning, before the impact of FX Networks acquisition, I have estimated VOC's FCF (OCF less maintenance capex) to be in a range of $40m to $50m for 2015, putting it on a multiple of 10x to 12x on current market capitalisation. My estimate already factored for the Vodafone EBIT reduction, because I believe this reduction will be compensated partly by volume increases. VOC's internet revenue figures are staggering, surpassing even my most optimistic guess. Can you even begin to imagine data demand once the NBN is up and running?
VOC Price at posting:
$5.24 Sentiment: Hold Disclosure: Held