VEON (VEON) is back in focus after its Kyivstar Group-supported digital ecosystem helped Uklon start Ukraine's first autonomous vehicle pilot with Boryspil International Airport, highlighting the telecom group's role in emerging mobility platforms.

Despite the Kyivstar backed autonomous vehicle pilot and a recent change in Kyivstar's CFO, VEON's share price return has been relatively muted in the very short term. However, its 30 day share price return of 11.63% sits alongside a 3 year total shareholder return close to 3x and a 1 year total shareholder return of 6.02%, suggesting longer term holders have seen a very different experience to recent traders.

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With VEON showing a 30 day gain of 11.63% and a 3 year total shareholder return close to 3x, yet still trading at a discount to analyst targets, is there still a buying opportunity here, or is future growth already priced in?

Most Popular Narrative: 32.9% Undervalued

With VEON last closing at $56.14 against a narrative fair value of $83.64, the current price sits well below what this framework suggests.

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 achieve significant ongoing subscriber growth and strong ARPU uplift, directly supporting future revenue and EBITDA growth.

Curious what kind of revenue mix, profit margins, and earnings trajectory are baked into that valuation gap? The most followed narrative presents a specific growth roadmap, tied to detailed assumptions on digital penetration and profitability that many investors might not be factoring in yet.

Result: Fair Value of $83.64 (UNDERVALUED)

However, investors still need to watch currency swings across VEON’s core markets and the impact of higher refinancing costs on its US$4.63b gross debt load.

Next Steps

Given the mix of optimism and concern in this story, it may be useful to review the underlying numbers yourself and to form your own view with the help of the 5 key rewards and 2 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.