Sea: The Growth Model Remains Intact

Roman Vitasek 535 Followers Follow Summary Sea Limited is structurally undervalued, with an 18% upside to my $141/share fair value estimate. SE’s diversified model—Shopee, Monee, and Garena—drives sustainable growth, with 32%+ five-year revenue CAGR and expected FY2026 revenue of $31 billion. CEO Forrest Li’s owner-operator mindset and operational excellence underpin SE’s rapid turnaround and margin expansion potential. Risks include prolonged investment cycles and margin pressure from competition, but SE’s scale, leadership, and growth runway remain compelling. wichianduangsri/E+ via Getty Images Investment thesis Sea Limited ( SE ) is Southeast Asia's largest technology company, operating three distinct and highly synergistic businesses: Shopee (e-commerce), Monee (digital financial services) and Garena (mobile gaming). Sea’s investment story is based on the This article was written by Roman Vitasek 535 Followers Follow I am a portfolio manager at IAD Investments, an asset management company based in Slovakia. My investment universe are Emerging Markets with the main focus on companies located in Central and Eastern Europe. My goal as a manager is to search for undervalued companies and mistakes in the markets and incorporate these views in the investment portfolio. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SE over the next 72 hours. 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.