GRAB - Grab: Southeast Asia's Rideshare Titan Deserves A Buy

2024-05-23 16:28:04 ET

Summary

• Grab, the Singapore-based rideshare giant, has significant long-term potential in the fast-growing Southeast Asian market.
• The company is experiencing profitability in its deliveries segment and aims to double adjusted EBITDA margins in this space.
• Grab's multi-pronged business, including mobility and financial services, is growing rapidly and offers additional revenue streams.
• The company is still trading at a reasonable ~3.5x current-year revenue multiple, with multiple catalysts for further growth and margin expansion.

It's often said that investors typically view international companies with a discount in mind. That's an unfortunate oversight, especially when the S&P 500 is trading at all-time highs and is, at least in my view, in danger of a near-term correction. It's also misguided, especially when overseas companies - especially those operating in fast-growing developing markets - have much more long-term potential than their domestic counterparts....

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