Sea: Why 22x P/E Is A Steal For This Southeast Asian Behemoth (Rating Upgrade)

Kenio Fontes2.35K FollowersFollow5ShareSavePlay(12min)CommentsSummarySea Limited is upgraded to a buy, reflecting a 40% stock decline despite robust revenue and EBITDA growth.SE's competitive landscape has intensified, driving higher logistics costs at Shopee but also reinforcing its infrastructure and market moat.Garena and Monee divisions contribute nearly 80% of EBITDA, providing stability and diversification beyond e-commerce.SE trades at a forward P/E of 22x, well below its 5-year average of 37x, offering compelling valuation for 30%+ top-line and 40% EBITDA growth. Mawaddah Fauziah/iStock Editorial via Getty Images The first time that I covered Sea Limited (SE) was in a comparative article between Grab (GRAB) and Sea. My conclusion in this article was that both were good companiesThis article was written byKenio Fontes2.35K FollowersFollowEquity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collaborations or to connect!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.