The Leading Unicorn of the Pack
In sunny Singapore where I live, the word “Grab” has evolved from a verb to something that is synonymous with both food delivery and ride-hailing, to the point where
Grab Holdings: Worth More Than Just 39.6 Billion Dollars
Summary
- Grab has evolved to be almost ubiquitous in Southeast Asia due to its success with ride-hailing and food delivery in the region, which provide significant macro tailwinds to leverage on.
- Grab is strategically positioned in a league of its own, allowing it to outcompete competitors in the long-run.
- A rough DCF valuation reveals the likelihood that Grab will be fairly valued at IPO if benchmarked to a similar food delivery service.
- There might be some risks involved, but given its stellar business model and strategic position within a fast-growing industry, Grab is very likely to outcompete this benchmark, suggesting that it is worth more than 39.6 Billion dollars.
I am an aspiring equity researcher with a passion for economics and fundamental analysis. I search for firms with stellar competitive strategies, whose qualitative and quantitative growth prospects justify their current valuation, as well as clearly undervalued picks for long term price appreciation.
Analyst’s Disclosure:I am/we are long AGC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.