SE
Sea LimitedTechnology·Internet & Direct Marketing
Current Price
$107.47
Market Cap
$65.0B
Net Debt
-$8.6B
Shares Outstanding
0.60B
Financial Statements
| Metric | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $414M | $827M | $2.2B | $4.4B | $10.0B | $12.4B | $13.1B | $16.8B |
| Revenue Growth | — | 99.7% | 163.1% | 101.1% | 127.5% | 25.1% | 4.9% | 28.8% |
| Operating Income | -$502M | -$989M | -$891M | -$1.3B | -$1.6B | -$1.5B | $225M | $662M |
| Operating Margin | -121.3% | -119.6% | -41.0% | -29.8% | -15.9% | -11.9% | 1.7% | 3.9% |
| Net Income | -$560M | -$961M | -$1.5B | -$1.6B | -$2.0B | -$1.7B | $151M | $444M |
| Net Margin | -135.3% | -116.2% | -67.2% | -37.0% | -20.6% | -13.3% | 1.2% | 2.6% |
| EPS (Diluted) | $0.00 | $-2.84 | $-3.35 | $-3.39 | $-3.84 | $-2.96 | $0.25 | $0.74 |
| Free Cash Flow | -$402M | -$673M | -$170M | $220M | -$564M | -$2.0B | $1.8B | $3.0B |
| FCF Margin | -97.0% | -81.3% | -7.8% | 5.0% | -5.7% | -15.9% | 14.1% | 17.6% |
Historical Cash Flows
Historical Cash Flows
| ($M) | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $414M | $827M | $2.2B | $4.4B | $10.0B | $12.4B | $13.1B | $16.8B |
| Growth | — | 99.7% | 163.1% | 101.1% | 127.5% | 25.1% | 4.9% | 28.8% |
| EBIT | -$502M | -$989M | -$891M | -$1.3B | -$1.6B | -$1.5B | $225M | $662M |
| EBIT Margin | -121.3% | -119.6% | -41.0% | -29.8% | -15.9% | -11.9% | 1.7% | 3.9% |
| NOPAT | -$397M | -$781M | -$704M | -$1.0B | -$1.3B | -$1.2B | $112M | $341M |
| D&A | $23M | $55M | $117M | $169M | $261M | $428M | $441M | $390M |
| CapEx | $67M | $177M | $240M | $336M | $772M | $924M | $242M | $318M |
| ΔNWC | $0 | -$559M | $1.5B | $2.3B | $3.7B | -$2.2B | -$2.1B | $2.0B |
| Unlevered FCF | -$441M | -$345M | -$2.4B | -$3.5B | -$5.4B | $536M | $2.5B | -$1.5B |
DCF Valuation
Adjust the assumptions below to derive your own intrinsic value. All calculations update in real-time.
Perpetuity Growth
$70.35
vs $107.47-34.5%
Exit Multiple
$124.82
vs $107.47+16.1%
Projected Cash Flows
| ($M) | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|
| Revenue | $19.3B | $21.9B | $24.3B | $26.7B | $28.8B |
| Revenue % Chg. | % | % | % | % | % |
| EBIT | $1.9B | $2.6B | $3.4B | $4.0B | $4.6B |
| EBIT Margin | % | % | % | % | % |
| Tax Rate | % | % | % | % | % |
| NOPAT | $1.6B | $2.2B | $2.9B | $3.4B | $3.9B |
| NOPAT Margin | 8.5% | 10.2% | 11.9% | 12.8% | 13.6% |
| D&A | $774M | $874M | $970M | $801M | $865M |
| D&A / Revenue | % | % | % | % | % |
| CapEx | $774M | $874M | $728M | $801M | $865M |
| CapEx / Revenue | % | % | % | % | % |
| Chg. NWC | $387M | $437M | $485M | $534M | $576M |
| NWC / Revenue | % | % | % | % | % |
| Unlevered FCF | $1.3B | $1.8B | $2.6B | $2.9B | $3.3B |
| PV of UFCF | $1.1B | $1.5B | $1.9B | $1.9B | $2.0B |
| Σ PV of UFCF | $1.1B | $2.6B | $4.5B | $6.4B | $8.4B |
%
%
x
Valuation Waterfall
Perpetuity Method
PV of FCFs$8.4B
PV of Terminal Value$25.5B
Enterprise Value$33.9B
Less: Net Debt$8.6B
Equity Value$42.6B
Exit Multiple Method (EV/EBITDA)
PV of FCFs$8.4B
PV of Terminal Value$58.5B
Enterprise Value$66.9B
Less: Net Debt$8.6B
Equity Value$75.5B
Sensitivity Analysis
WACC vs Terminal Growth (Perpetuity)
| WACC \ Terminal Growth | 2.0% | 2.5% | 3.0% | 3.5% | 4.0% |
|---|---|---|---|---|---|
| 9.0% | $81.31 | $85.61 | $90.63 | $96.57 | $103.68 |
| 10.0% | $72.29 | $75.44 | $79.03 | $83.18 | $88.02 |
| 11.0% | $65.29 | $67.67 | $70.35 | $73.38 | $76.85 |
| 12.0% | $59.71 | $61.56 | $63.61 | $65.91 | $68.49 |
| 13.0% | $55.16 | $56.63 | $58.24 | $60.02 | $62.01 |
WACC vs Exit Multiple
| WACC \ Exit Multiple (EV/EBITDA) | 12x | 15x | 18x | 21x | 24x |
|---|---|---|---|---|---|
| 9.0% | $99.57 | $117.22 | $134.87 | $152.52 | $170.17 |
| 10.0% | $95.99 | $112.85 | $129.71 | $146.57 | $163.43 |
| 11.0% | $92.59 | $108.70 | $124.82 | $140.93 | $157.05 |
| 12.0% | $89.36 | $104.77 | $120.18 | $135.59 | $151.00 |
| 13.0% | $86.30 | $101.04 | $115.78 | $130.52 | $145.26 |
Investment Thesis
Sea Limited is the dominant internet platform in Southeast Asia with market-leading positions in gaming (Garena/Free Fire), e-commerce (Shopee), and fintech (SeaMoney). After a profitability pivot in 2022-2023, the company has returned to growth while maintaining improved unit economics. The key question is whether Shopee can sustain its market share lead against competitors while expanding margins.
Bull Case
- +Shopee is the #1 e-commerce platform in SEA with growing take rates and advertising revenue
- +SeaMoney expanding rapidly with lending, insurance, and digital banking products
- +Free Fire remains a top global mobile game with strong monetization
- +Southeast Asia digital economy is early innings with strong secular tailwinds
- +Improving profitability trajectory with operating leverage as platforms scale
Bear Case
- -Intense e-commerce competition from TikTok Shop, Lazada (Alibaba), and local players
- -Garena revenue declining as Free Fire matures and lacks new hit games
- -Regulatory risks across multiple Southeast Asian markets
- -Currency headwinds from weak SEA currencies vs. USD
- -History of heavy cash burn and dilutive share issuance
Key Catalysts
- →Shopee ad revenue ramp and take rate expansion
- →SeaMoney digital banking license rollouts across SEA markets
- →New game launches from Garena to diversify beyond Free Fire
- →Profitability inflection with sustained positive operating income
- →Potential divestiture of underperforming LatAm operations
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Disclaimer: This is not investment advice. All projections are estimates based on publicly available data. Past performance does not guarantee future results. Always do your own research before making investment decisions. Last updated: 2026-02-19.