VEON (NasdaqCM:VEON) — Assessing Valuation After Recent Share Price Decline

VEON (NasdaqCM:VEON) shares have been moving amid ongoing volatility in the telecom sector, with the stock showing a nearly 10% decline over the past month. Investors may be weighing recent company fundamentals against broader market trends.

See our latest analysis for VEON.

This latest share price slide comes after a strong year for VEON, with its 1-year total shareholder return standing at 40.8 percent. While short-term momentum has clearly cooled recently, that performance is still impressive compared to the sector’s broader volatility. Its three-year total return of nearly 387 percent suggests plenty of long-term value creation, even as the nearer-term risks are reassessed.

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But with shares now trading at a significant discount compared to both analyst targets and intrinsic value, the key question is whether VEON is genuinely undervalued or if the market has already factored in its future growth prospects.

Most Popular Narrative: 33.6% Undervalued

VEON's last close price sits well below the narrative’s fair value estimate, making this gap in perceived worth hard to ignore for investors focusing on fundamentals. The debate now turns to the underlying catalysts driving such an aggressive undervaluation call. Here is a snapshot of what is fueling it.

The company is capitalizing on large, young, and increasingly urban populations in core markets (e.g., Pakistan, Bangladesh, Ukraine), which are likely to drive continued uptake of digital financial services (like JazzCash), enabling recurring, high-margin fee-based revenue streams, and supporting net margin expansion and higher earnings quality over time.

Read the complete narrative.

What hidden levers power VEON's valuation leap? The narrative hints at a dramatic shift towards high-margin digital services and a bold profit expectation few would predict. Discover the full financial vision behind these projections in the narrative.

Result: Fair Value of $69.64 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent currency volatility and ongoing asset sales in VEON’s core markets could quickly erode margin gains and undermine the bullish outlook.

Find out about the key risks to this VEON narrative.

Build Your Own VEON Narrative

If you'd like to dig into the data yourself or come to your own conclusions, it only takes a few minutes to build a custom narrative. Do it your way

A great starting point for your VEON research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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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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