What VEON Holders Got Right

VEON’s year has been packed with concrete moves, but one stands out as especially tangible for investors: management locked in a US$100m share buyback program and then expanded it, committing to cancel the repurchased stock. For VEON shareholders, the return from the start of the year was 57.9%, including dividends. If you were deciding on 1 January whether to buy, how confident would you need to be that digital services and asset-light deals could justify that outcome?

The easy part of this move is behind VEON. Zero in on 33 high quality undervalued stocks for companies trading below our estimates.

The Two VEON Stories Investors Had To Weigh

The shares cost US$52.57 at the start, so any investor in VEON first had to decide which story about its future seemed more realistic.

The optimistic view leaned on digital services in young, urban markets. That side put fair value at US$69.64, a price implied by assumptions such as 7.0% annual revenue growth and a 13.5% profit margin, with a future P/E of 8.2x over 3 years.

The cautious camp focused on Kyivstar and balance sheet pressure. That narrative suggested a fair value of US$45.56 and leaned on assumptions of 5.3% revenue growth, an 11.2% margin, a future P/E of 7.6x over 5 years, and high leverage risk.

What The VEON Results Actually Tested

VEON reported Q2 2026 revenue of US$1.271b compared with US$1.087b a year earlier, which leaned toward the optimistic digital expansion story. Profit told a different tale. Net income excluding extra items was US$595m in Q2 2025 and US$122m in Q2 2026, and net margin moved from 54.7% to 9.6%. The evidence cut both ways.

The whole episode turned on one assumption investors made on day one, that higher sales would translate into durable profitability. When you look at another telecom or digital operator, track revenue, absolute earnings, and net margin together to see whether top line growth is actually turning into the returns the story implies.

What Today's VEON Price Already Assumes

VEON now trades at US$83.2 from a starting point of US$52.57, a 57.9% total return from the start of the year. The selected Narrative’s Fair Value for VEON sits below that price and frames the current quote as already baking in demanding expectations.

That view hinges on digital finance scale, capital spending and recurring buybacks all holding together. A buyer today is effectively assuming that cash generation and margins from Pakistan centered digital services stay strong enough to support both network investment and ongoing repurchases. How does that square with the execution and regulatory risks set out in the selected Narrative?

"The current valuation, with coverage initiations highlighting upside and management committing to at least US$100 million of annual buybacks and a US$200 million repurchase program, suggests that the share price already assumes sustained high growth and cash generation and that there may be limited room for execution or macro setbacks."

The price and this Narrative do not agree. → Uncover what this Narrative says VEON is actually worth

How Could You Get There Earlier?

What if your next investment idea came before the headlines? Go straight to the companies whose prices and our estimates still disagree. Three places to start, with the names waiting behind the link.

• Company 1 - 47% below our estimate - targets gamblers shifting from physical venues into regulated online betting platforms.
• Company 2 - 42% below our estimate - converts complex regulatory, safety and AI questions into recurring technical consulting projects.
• Company 3 - 46% below our estimate - turns data center and modular construction demand into long booked mechanical projects.

Those are three of them. See the full list of 25 financially solid companies →

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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