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Grab Is Growing Fast But The Valuation Is Too High

Aug. 04, 2021 4:13 PM ETGrab Holdings Limited (GRAB)10 Comments
WideAlpha profile picture


  • Grab is set to merge with SPAC Altimeter Growth Corp. by the end of the year. Investors wanting to invest in the company can do so by buying the SPAC shares now.
  • The company is valued at ~$45 billion, which we believe is way too generous.
  • It is still worth watching given the fact that it is the biggest super app in South East Asia and it offers a multitude of services.
  • Economic growth in South East Asia is expected to be robust, with annual growth estimated at 4.9% per year.
Ordering food online from home on mobile device app concept
bankkgraphy/iStock via Getty Images

Grab is the number one super app in Southeast Asia, investors not familiar with it can think of it as merging Uber with a banking app. Its services include mobility, package deliveries, food deliveries, and financial services. The company is still private but it is set

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Comments (10)

20% down on the first day of trading as GRAB.

I live in SEA and use Grab all the time.

I agree, great prospects but very overpriced
Mktneutralhedger profile picture
When will the deal be consummated? October?
1. Living in Asia, I can't help but feel that this write-up on Grab seems to be based on an academic desktop exercise. It's hard to take a writer seriously when he / she has never even tried the Grab app before, let alone never even visited Singapore, Malaysia, Indonesia, Cambodia, Vietnam, Myanmar or the Philippines before. (I would be surprised if the writer claims otherwise)
2. Just FYI - in some of its host countries - Grab is even more dominant in the merchant market compared to the large acquiring banks. Secondly, in some of the markets above - it's basically competing with virtually no competition. And by the way, Uber exited all markets occupied by Grab.
3. Yes, from the writing - there are some glaring gaps which are evident, but I won't even bother mentioning them here. PS - I'm not even vested in Grab - so there's no ulterior motive here. Cheers.
@Marcus_Maximus Just wondering why your not invested in Grab since you seem to believe they are so dominant in their business prospects.
@kicker2011 I'm old-fashioned. I prefer more matured businesses with a solid balance sheet, low long term debt and strong operating cash flows. So more "matured" tech like Msoft, Meta fits the bill. (The tech meltdown is a separate story for another day)
Secondly, dominance comes with a price. Companies like Grab throws tons of rebates and incentives to gain market share from merchants and consumers alike. It's yet to be seen if loyalty can be sticky the moment incentives are taken down a notch or too. I'm not too sanguine at this prospect.
By the way - you need to know something really well - in other to make a decision whether to invest or not.
Taro Watterson profile picture
I cant take articles seriously that state Uber as a competitor. The fact that the Author researches the compony so little that he doesnt know that Uber sold its South East Asia business to Grab in exchange for ownership and is now an Investor not a competitor is just sad.
05 Aug. 2021
Big dogs has shares lockup for 3 years; and you say it’s already price in? You crazy
Cramer said buy at 11.50 😂😂

I think the southeast Asian market could be better for ride share and fin-tech than projected. Next quarter will be more telling. Perhaps a good speculative long? There is competition - Gojek.
Mktneutralhedger profile picture
@Could Be buying before the deSPAC is a big risk nowadays. Rarely those premium over par stay after ticker change. Cramer says so many things that a couple turn right pieces of advise. For the rest he doesn't lose money so he doesn't care.
Didn't users decline significantly Y/Y? I'm more concerned about that than anything else.
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