VEON (NasdaqGS:VEON) is back in focus after its Bangladeshi operator Banglalink launched a Starlink powered satellite-to-mobile service, making Bangladesh the first South Asian market to offer satellite-to-cellular connectivity.
VEON’s recent news lands against a backdrop of strong momentum, with the share price delivering a 30 day return of 16.91% and a 90 day share price return of 55.95%, while the 3 year total shareholder return is very large at more than 4x. The small 1 day share price decline of 0.49% comes after a year to date share price return of 52.68% and a 1 year total shareholder return of 55.84%. This suggests investors are reacting to a longer run shift in how the business is perceived rather than just this single Starlink partnership.
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VEON now trades at a double edged gap: a small 8% discount to analyst targets, but a far steeper discount to some fair value estimates. Is the market’s caution on risk and execution still warranted?
Most Popular Narrative: 7% Undervalued
VEON’s most followed narrative lines up a fair value of $86.87 against a last close of $80.46. This frames the recent Starlink news within a broader digital and cash flow story that extends beyond telecom headlines.
The ongoing shift toward an asset-light operational model and restructuring (including tower sales, selective market exits, and 4G-focused infrastructure investments) is driving operational efficiency, freeing up capital for reinvestment or shareholder returns, and improving ROIC. This is expected to support long-term net margins and capital returns.
See why 9 investors see VEON as 7% undervalued.
Result: Fair Value of $86.87 (UNDERVALUED)
Still, the VEON story could wobble if currency swings in markets like Pakistan or Ukraine hit reported earnings, or if high gross debt near US$4.63b tightens refinancing options.
Find out about the key risks to this VEON narrative.
Another View on VEON’s Valuation
The big DCF story presents VEON as deeply undervalued, yet the earnings multiple tells a very different tale. The stock trades on a P/E of 93.9x compared with 14.8x for the global wireless telecom group, while the fair ratio suggests 25.7x as a level the market could move toward. That gap points to meaningful valuation risk if sentiment shifts away from long term cash flow assumptions.
See what the numbers say about this price in our valuation breakdown with the See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Mixed signals on VEON’s valuation and risk profile can be confusing, so move quickly, review the underlying numbers yourself, then weigh the 2 key rewards and 3 important warning signs.
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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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