Added to YB: 2026-05-22
Pitch date: 2026-05-20
SE [bullish]
Sea Limited
+4.23%
current return
Author Info
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Company Info
Sea Limited, through its subsidiaries, operates as a technology company in Southeast Asia, Latin America, the rest of Asia, and internationally.
Market Cap
$53.0B
Pitch Price
$85.35
Price Target
120.00 (+35%)
Dividend
N/A
EV/EBITDA
15.49
P/E
34.08
EV/Sales
1.83
Sector
Broadline Retail
Category
growth
Sea Limited (SE) Investment Research: Target Price, Full Valuation Analysis & Monte Carlo Simulation
SE: Deep-dive analysis shows 46.6% rev growth but deliberate margin compression from $8.8B SeaMoney loan book (+71% YoY) + Shopee fulfillment reinvestment pushing FY26 FCF/NI to 0.98x. Trades 14.7x EV/EBITDA (35% discount vs MELI) despite similar growth. DCF PT $110 (+26%), SOTP $114 (+30%), Monte Carlo $120 (+38%). Bear case $62 (-29%) if NPLs spike or Shopee margins stall <1%. Catalysts: Q2'26 earnings showing Shopee EBITDA recovery toward 2-3% target, SeaMoney loan growth <30%, FY27 FCF >$2.4B. Risks: TikTok Shop share gains, Brazil competition, Garena decline, tax surge +57% YoY. Heavy C-suite selling Apr-May. Buy zone $77-88 for 20% MOS, 3-5yr horizon. 62% prob of gain, asymmetric 1:1.3 risk/reward.
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