- In our last update, the stock was around $250, and we called for a reality check in progress which might have led to a sharp revision in the price.
- We were right! As of 1st February 2022, the stock is trading at $150 per share and is 40% down since our last update on December 10th, 2021.
- We continue to rely on the same valuation approach of December (which we also used on the September 2021 report), which is based on consensus estimates.
- We try to gauge what is the implied discount rate, which delivers the current share price given consensus estimates which have been cut over the last ten months;
- This is a clear signal that analysts were overoptimistic, and we believe they will continue adjusting estimates over the next quarters. SE is still going through a reality check which might not be yet over.
For further details see:
Sea Limited - Too Early To Call For The Bottom