We have previously highlighted the poor fundamentals of this company and made a recommendation to short this company. The market has reacted negatively since the company reported its result on 20th August 2019 with the stock declining by about 10% in the past 10 days. We have factored in the company’s 2Q19 performance into our model and maintain our view that the company is still overvalued despite being conservative in our analysis.
We have revised our models to reflect Sea Limited 2Q19 performance and our valuation model suggests that the company should be trading