Is VEON a good stock to buy?We came across a bullish thesis on VEON Ltd. on One Idea Per Day's Substack by Paul. The thesis was published on July 3rd, when the stock was trading at $52, and VEON has gained 62.5% since then. The rally appears to reflect the company's raised earnings outlook and growing digital services business, strengthening the case that VEON's growth extends beyond traditional telecom. In this article, we will summarize the bulls' thesis on VEON. VEON Ltd.'s share was trading at $84.50 as of October 26th 2026. VEON's trailing and forward P/E were 83.72 and 9.43 respectively according to Yahoo Finance.
This isn't the first time we see a telecommunications company pitched as a great investment. VEON shares gained 70.98% over the last 12 months. Comparable stocks like Millicom International Cellular gained 58.43% during the same period. Why are telecommunications stocks rising so much and is it really a good time to buy them?
hin255/Shutterstock.com
In July, we published an article about the 12 Undervalued Stocks to Buy According to Wall Street and VEON ranked #10 in that article. VEON returned 57.20% since then. So, hedge funds were right about VEON. This article highlights VEON among 10 Quality Value Stocks Likely to Make a Comeback According to Analysts . Before getting into our analysis, let's take a look at the business and why some investors like the stock so much.
VEON Ltd. (NASDAQ:VEON) operates telecom and digital services across emerging markets, but its most important asset right now is its 84% stake in separately listed Kyivstar (NASDAQ:KYIV), Ukraine's leading telecom operator — and that's central to understanding the stock. Kyivstar's stake alone is worth about $3.1 billion, almost the same as VEON Ltd.'s entire $3.6 billion market value.
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential
In other words, the market is putting almost no price tag on everything else VEON Ltd. owns: Jazz, Pakistan's largest mobile operator, JazzCash, and operations in Kazakhstan, Bangladesh, and Uzbekistan. With the stock around $52 and trading at just 7 times earnings, investors appear to be getting these businesses almost for free.
The bullish case is that this valuation understates how much VEON Ltd.'s emerging-market businesses are actually growing. JazzCash, its fintech arm in Pakistan, has crossed 60 million registered users and processed nearly $60 billion in transactions over the past year, showing the digital side of the business is scaling well beyond traditional telecom. That growth, spread across Pakistan, Kazakhstan, Bangladesh, and Uzbekistan, gives VEON Ltd. exposure to markets where mobile and digital payment usage keep expanding.
Recent results back this up. Revenue grew 17% year over year in the first quarter of 2026, profits (EBITDA) grew even faster, and digital revenue jumped 58%, now making up about a quarter of total sales (see how Uklon is expanding VEON's digital services with bus-ticket booking ). Management also raised its full-year revenue growth target, a sign of confidence in the momentum. Kyivstar's own recent Nasdaq listing gives investors a clear price reference for that asset, while VEON Ltd.'s $1.4 billion bond refinancing shows debt remains a key part of the story. If growth continues and confidence builds, the market could eventually start valuing the non-Kyivstar businesses more fairly.
That gap is really the whole thesis: Kyivstar makes up roughly 85% of VEON Ltd.'s market value, leaving Jazz, JazzCash, and the rest of the regional business priced at almost nothing. If sentiment shifts or management finds ways to unlock value from these assets, the upside could be meaningful. But the discount exists for real reasons too — a history of value destruction, a complicated holding-company structure, and the challenge of turning emerging-market earnings into dollar returns for shareholders.
Much of this also hinges on how investors feel about Ukraine. Kyivstar's shares have gained on hopes of a peace deal, but VEON Ltd.'s stock hasn't kept pace, which has only widened the gap between what the market says the rest of the business is worth and what it's actually generating. Currency risk adds another layer: VEON Ltd.'s earnings from Pakistan, Bangladesh, and Kazakhstan are exposed to local currencies that can weaken against the dollar, shrinking reported results.
Ownership adds further uncertainty. Around 45% of VEON Ltd.'s shares are controlled by LetterOne, whose co-founders are under sanctions, creating an overhang on the stock. Combined with Kyivstar's exposure to Ukraine's geopolitical situation, the market seems likely to keep applying a discount until these structural risks are resolved.
Another risk for the stock is the cost of keeping its telecom networks competitive. Growing mobile data and digital services creates opportunities, but it also requires continuing investment in coverage, capacity, and technology. VEON says significant spending remains necessary to expand and upgrade its networks. If investment needs rise faster than customer revenue, more operating cash could be absorbed by infrastructure. Cutting spending too aggressively could instead weaken service quality and customer retention. This creates a trade-off between funding growth and freeing up cash for shareholders. In our opinion, the valuation discount could persist if stronger revenue and EBITDA fail to translate into enough cash after network investment.
Hedge fund positioning shows a steady signal. As per our database, 17 hedge funds held VEON Ltd. at the end of the second quarter, unchanged from the previous quarter. That flat trend suggests institutional investors remain comfortable holding their existing positions rather than adding or exiting, even amid the company's well-known risks. By comparison, hedge fund interest in peers moved in different directions: Millicom International Cellular (NASDAQ:TIGO) was held by 26 funds, down from 30, America Movil (NYSE:AMX) was held by 11 funds, down from 12, and Telecom Argentina (NYSE:TEO) was held by 16 funds, up from 12. The mixed shifts among peers suggest institutional interest in emerging-market telecom is selective, with VEON Ltd. holding steady rather than losing support.
Short interest data also paints a fairly calm picture for VEON Ltd. relative to its peers. About 0.63% of VEON Ltd.'s float is sold short, modestly higher than América Móvil, S.A.B. de C.V. at 0.48% and Telecom Argentina S.A. at 0.21%, but well below Millicom International Cellular S.A. at 2.83%. This suggests VEON Ltd. is drawing somewhat more skepticism than América Móvil, S.A.B. de C.V. and Telecom Argentina S.A., but bearish bets remain limited despite its geopolitical and ownership risks.
Valuation Analysis
VEON's EV/EBITDA is 4.92x. América Móvil, S.A.B. de C.V., Telecom Argentina S.A., and Millicom International Cellular S.A. trade at EV/EBITDA multiples of 4.89x, 3.13x, and 7.12x, respectively. VEON's own EV/EBITDA was 3.27x on December 31, 2025, making its current valuation approximately 50% higher. We believe the current valuation reflects investor concerns about Ukraine exposure, currency volatility, and the company's ownership structure, alongside improving confidence in its digital businesses. However, the discount to Millicom appears worth considering given VEON's operating growth, although its valuation is close to América Móvil's and above Telecom Argentina's. VEON's EBITDA increased 17.7% in the first quarter of 2026, alongside revenue growth of 17%, while digital revenue rose 57.7% to represent 25.2% of total sales. We believe VEON can justify its current valuation without accelerating beyond this growth rate if operating gains translate into stronger cash flow after network investment and financing costs. If VEON sustains its digital expansion and converts subsidiary earnings into cash available to shareholders, the current valuation could offer an attractive entry point despite its geopolitical, currency, and ownership risks.
Previously, we covered a bullish thesis on Verizon Communications Inc. (VZ) by Charly AI in April 2025, which highlighted 5G expansion, improving financial metrics, strong cash flow, dividend support, and attractive valuation. VZ's stock price has appreciated by approximately 2.20% since our coverage. We believe VEON could be a good long-term investment if digital growth translates into cash for shareholders after network spending and financing costs, despite its geopolitical, currency, and ownership risks.
VEON Ltd. is not on our list of the 40 Most Popular Stocks Among Hedge Funds . While VEON could offer long-term upside if its digital businesses keep growing and subsidiary earnings convert into cash for shareholders, we believe certain AI infrastructure stocks offer far stronger long-term potential at a much more attractive entry point. If you are looking for an AI stock more promising than VEON that operates as a critical AI tollbooth and stands as the most important company in the world, check out our report about this must-own AI stock .
Disclosure: None.
