SEA LTD Stock Analysis

SEA LTD is an Asia-centric digital company operating in three profitable segments of (1) E-commerce, (2) gaming, and (3) finance services. SEA LTD is dominant in E-commerce in a few growing markets, notably Indonesia and a growing finance services. Growth has been tampered the last year post covid recovery and in a high interest rate environment. Nevertheless, SEA has shown that it could sustain profitability in 3 consecutive quarters till date. However, SEA does face strong competition in the market it is operating in and its business is largely concentrated in Asia. As such, with ~9.4% growth as well as high competitive forces, SEA makes for a good buying opportunity at around 10 x P/E, i.e., at $30 or at key resistance value (i.e. at $35) for sufficient margin of safety.

Numbers at a glance:

Metric	Q3-2022 to Q2-2023
Revenue	12.8 (increase of 9.4%) vs 11.7
Net-Profit	$331M+$205.2M+$422.8M-$373.5M
10xP/E (Optimistic)	​$12.786B
Fair Enterprise Value	$17.148B
Fair Share Price Value	$30.39
Share Price based on Current P/E Range (23.46)	​$60.89
Share Price based on 15x P/E	$41.7