Is Sea Ltd (SE) overvalued?
On Equity Rank's model estimate, SE trades close to its fair value (5% above it). Sea Ltd (SE) last closed at $75.73; the multi-method model fair value is $72.06.
| Price | Model fair value | Price vs model |
|---|---|---|
| $75.73 | $72.06 | 5% above |
What the answer rests on
- 5 of 8 valuation methods put SE's value above its price and 3 put it below, so the methods disagree.
- To justify today's price, SE's free cash flow would need to grow about 1.8% a year for ten years (a reverse discounted cash flow).
- SE trades at 31.0 times its last year's earnings, against a median of 39.9 for 10 profitable E-Commerce companies.
- Over the past year the price sat below the model fair value on 53% of trading days. The gap ranged from 20% below to 15% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind SE's fair value · What prices assume · Other companies