SE
Sea Limited
$107.41
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 30.3% above fair value
You pay
$107.41
Bear
$72.14
Fair
$82.44
Bull
$92.75
Bear
$72.14
-32.8%
$2.52 × 21x P/E
Fair
$82.44
-23.3%
$2.52 × 24x P/E
Bull
$92.75
-13.6%
$2.52 × 27x P/E
Key Value Driver
Normalized P/E multiple (24x base case)
Implied Market Multiple
42.6x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $133.60 from 44 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $82.44 per share.
Warnings
Dividend-based valuation: $194.93 (above our primary estimate by 222%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $133.60 (from 44 analysts). Our estimate is 55% below the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples