Regulatory approval opens digital banking door in Bangladesh
VEON (VEON) is in focus after its joint venture with Square Group received a Digital Bank license from Bangladesh Bank. This approval gives the telecom operator a route into full-scale digital banking in Bangladesh.
Investor attention has already been building around VEON, with a 30-day share price return of 20.22% and a 90-day move of 43.42%. The 1-year total shareholder return of 55.16% and very large 3-year total shareholder return suggest this regulatory milestone lands on top of strong longer term momentum rather than trying to reverse a weak trend.
See how VEON’s push into digital banking compares to other telecom and fintech plays by reviewing the hand picked 20 high quality undiscovered gems shaping the next wave of digital finance.
After a 55.16% 1 year total return and a very large 3 year gain, VEON’s new digital banking license raises a simple issue: Is most of the repricing already in the stock, or not yet reflected in valuation?
Most Popular Narrative: 11% Undervalued
VEON last closed at $77.19, while the most followed narrative pegs fair value at $86.87. This points to a meaningful valuation gap that analysts are trying to explain through its shift into higher margin digital services and capital light assets.
VEON is aggressively expanding digital service offerings (including fintech, super apps, ride-hailing, entertainment, and AI-driven products) in emerging markets that are rapidly digitalizing and seeing surging demand for mobile internet and data. This positions the company to pursue ongoing subscriber growth and ARPU uplift, which would be consistent with higher revenue and EBITDA.
See why 9 investors see VEON as 11% undervalued.
Result: Fair Value of $86.87 (UNDERVALUED)
Still, VEON’s exposure to currency swings in Pakistan, Ukraine, Kazakhstan and Bangladesh, plus its US$4.63b gross debt load, could quickly flip this narrative.
Find out about the key risks to this VEON narrative.
Another View: VEON looks expensive on earnings
While the narrative points to VEON trading below fair value on cash flow assumptions, its current P/E of 90.1x tells a different story. That level is far above the global wireless telecom average of 14.9x and the 13.5x peer mark. It is also well beyond the 25.7x fair ratio that the market could move toward over time.
If earnings forecasts misfire or sentiment cools, that gap can matter. A move closer to sector and fair ratio levels would imply a very different outcome for anyone buying purely on the undervalued story.
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Mixed signals on VEON’s value story and risk profile call for your own judgment, so move fast, review the full picture and weigh the 2 key rewards and 3 important warning signs.
Looking for more investment ideas beyond VEON?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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