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VEON (NasdaqCM:VEON) Valuation After Banglalink’s New Payment Service Approval in Bangladesh

Simply Wall St · 2d ago

VEON (NasdaqCM:VEON) just unlocked a new growth lever in Bangladesh, with its Banglalink unit cleared by Bangladesh Bank to operate as a payment service provider, opening fresh opportunities in digital financial services.

See our latest analysis for VEON.

The Banglalink approval adds to a string of positive catalysts, from Kyivstar’s role in building Ukraine’s national LLM to fresh index inclusions, and investors have noticed, with a roughly 20% year to date share price return and a powerful multi year total shareholder return suggesting momentum is still very much alive.

If VEON’s mix of digital infrastructure and fintech is on your radar, this could be a good moment to explore similar telecom and infrastructure names via fast growing stocks with high insider ownership.

Yet with the shares still trading at roughly a 50 percent discount to analyst targets and strong multiyear returns already in the bag, is VEON quietly undervalued, or are markets already baking in its next leg of growth?

Most Popular Narrative: 33.3% Undervalued

With the narrative fair value sitting well above VEON’s last close of $51.14, the valuation case leans on aggressive digital growth and capital efficiency.

The company is capitalizing on large, young, and increasingly urban populations in core markets (e.g., Pakistan, Bangladesh, Ukraine). These markets 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.

Curious how steady top line growth, thinning margins, and a rising profit multiple can still point to upside? One set of long range earnings and revenue assumptions quietly underpins this target. Want to see how those moving parts are stacked to justify today’s implied discount?

Result: Fair Value of $76.68 (UNDERVALUED)

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

However, currency volatility, shrinking revenue from asset sales, and structurally lower margins in digital services could all challenge the positive valuation case.

Find out about the key risks to this VEON narrative.

Build Your Own VEON Narrative

If you see the numbers differently or want to dig into the assumptions yourself, you can build a custom view in minutes: Do it your way.

A great starting point for your VEON research is our analysis highlighting 3 key rewards and 2 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.