SE
Sea Limited
$87.27
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 3.6% above fair value
You pay
$87.27
Bear
$73.73
Fair
$84.26
Bull
$94.80
Bear
$73.73
-15.5%
$2.52 × 21x P/E
Fair
$84.26
-3.5%
$2.52 × 24x P/E
Bull
$94.80
+8.6%
$2.52 × 27x P/E
Key Value Driver
Normalized P/E multiple (24x base case)
Implied Market Multiple
34.6x
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 $139.67 from 44 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $84.26 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 $139.67 (from 44 analysts). Our estimate is 57% 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