VEON Ltd. (VEON): A Bull Case Theory

We came across a bullish thesis on VEON Ltd. on Value investing subreddit by Itchy-Commission-195. In this article, we will summarize the bulls’ thesis on VEON. VEON Ltd.'s share was trading at $55.72 as of January 29th. VEON’s trailing and forward P/E were 6.12 and 14.10 respectively according to Yahoo Finance.

Veon Ltd. (VEON) operates as a leading telecom provider across frontier markets, including Pakistan, Ukraine, Kazakhstan, Bangladesh, and Uzbekistan, collectively serving over 500 million people. The company commands dominant positions through its brands Jazz, Kyivstar, and Beeline, with Pakistan representing its largest market at roughly 35% of revenue and EBITDA, followed by Ukraine and Kazakhstan.

Despite challenging macro conditions, Veon has delivered high single-digit revenue growth and high-teens EBITDA growth in USD, underpinned by healthy margins, robust cash flow, and strong market penetration, particularly for 4G services. VEON’s market cap stands at $3.7 billion, with net debt of ~$3 billion, yielding an EV/EBITDA of 4.2x, substantially below peer emerging market telecom multiples, which often trade at 10–15x P/E despite weaker margins and returns.

A key differentiator for Veon is its aggressive push into digital adjacencies, including mobile payments, ride-hailing, and entertainment apps, leveraging its extensive mobile user base in markets lacking established tech ecosystems. Digital revenues, now nearly 20% of total sales, have grown over 50%, offering significant optionality for future growth even if overall penetration remains uneven across markets. In Ukraine, Veon’s Kyivstar subsidiary, recently listed on Nasdaq via SPAC, continues to show resilience amidst the war, maintaining 50% EBITDA margins and 30% free cash flow margins while acquiring leading digital platforms in ride-sharing and healthcare.

While Kyivstar may be modestly overvalued due to near-term geopolitical risks, the broader business—particularly in Pakistan, Kazakhstan, Bangladesh, and Uzbekistan—remains underappreciated by the market, with substantial upside from further digital adoption. Veon’s combination of dominant market positions, strong cash flows, and high-growth digital initiatives makes it a compelling, if higher-risk, investment opportunity in frontier telecom markets.

Previously, we covered a bullish thesis on Verizon Communications Inc. (VZ) by Charly AI in April 2025, which highlighted the company’s investments in 5G, IoT partnerships, fiber expansion, strong cash flows, and attractive dividend yield. VZ’s stock price has depreciated by approximately 5.59% since our coverage. Itchy-Commission-195 shares a similar focus on telecom fundamentals but emphasizes VEON’s leadership in frontier markets and high-growth digital adjacencies.

VEON Ltd. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held VEON at the end of the third quarter which was 11 in the previous quarter. While we acknowledge the potential of VEON as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.