Grab's Revenue Flywheel Will Drive Material Growth

Pacifica Yield13.84K FollowersFollow5ShareSavePlay(7min)CommentsSummaryGRAB’s valuation is at its lowest ever multiple since the superapp went public, trading at 4.8x trailing sales and 2.5x forward sales net of cash.Strong GMV growth of 21% year-over-year during the fourth quarter, rising user penetration, and a strategic superapp position underpin a long-term bullish thesis in Southeast Asia’s fast-growing markets.Risks include potential Indonesian regulatory changes, intensifying competition, and macro/geopolitical headwinds, but 20% revenue CAGR and 80% FCF conversion through 2028 guide conviction. teamtime/iStock Editorial via Getty Images Grab (GRAB) has followed software stocks and ride-hailing apps to dip lower over the last few months, even as revenue continues to come in strongly, underpinned by healthy profits and a positive free cash flowThis article was written byPacifica Yield13.84K FollowersFollowThe equity market is a powerful mechanism as daily fluctuations in price get aggregated to incredible wealth creation or destruction over the long term. Pacifica Yield aims to pursue long-term wealth creation with a focus on undervalued yet high-growth companies, high-dividend tickers, REITs, and green energy firms.Analyst’s Disclosure: I/we have a beneficial long position in the shares of GRAB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.