SE
Sea Limited
$77.94
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 28.9% above fair value
You pay
$77.94
Bear
$52.92
Fair
$60.48
Bull
$68.04
Bear
$52.92
-32.1%
$2.52 × 21x P/E
Fair
$60.48
-22.4%
$2.52 × 24x P/E
Bull
$68.04
-12.7%
$2.52 × 27x P/E
Adjust Assumptions
24.0x
2.52$
Key Value Driver
Normalized P/E multiple (24x base case)
Implied Market Multiple
30.9x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (44 analysts)
$153.67
Divergence from AlphaVal
61%
Summary
Applying a 24x P/E to adjusted EPS of $2.52, the base-case value is $60.48 per share. DDM cross-check: $194.93.
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 $153.67 (from 44 analysts). Our estimate is 61% 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