Wondering if Sea is a smart buy or overpriced right now? You are not alone. Figuring out its true value is one of the biggest questions investors are asking.
Despite a recent 6.1% dip over the past week and a 12.0% decline in the last month, Sea is still up an impressive 34.3% this year and 36.8% over the past 12 months.
Sea’s stock price has been on a rollercoaster as the company continues to make strategic moves in e-commerce and digital financial services, keeping it in the headlines. Recent reports on expansion into new Southeast Asian markets and pivotal partnerships with local firms have fueled both excitement and caution among investors.
Based on our checks, Sea scores a 3 out of 6 for value. This means it appears undervalued in about half of the key areas we assess. Next up, we will break down how different valuation methods measure Sea’s worth and, if you stick around, reveal a smarter way to interpret what these numbers truly mean.
Sea delivered 36.8% returns over the last year. See how this stacks up to the rest of the Multiline Retail industry.
A Discounted Cash Flow (DCF) model estimates a company’s intrinsic value by projecting its expected future cash flows and then discounting those cash flows back to today’s dollars. This approach aims to determine what a company is truly worth based on the cash it can generate in the future.
For Sea, the current Free Cash Flow (FCF) stands at $3.58 Billion, providing a solid foundation for further growth. While analysts cover cash flow projections for the next five years, projections beyond that (out to 2035) are extrapolated. This offers an extended glimpse into Sea’s potential. In 2029, Sea’s FCF is expected to reach $7.80 Billion, indicating robust anticipated growth.
Using all projected figures and discounting those future cash flows back to their present value, the DCF model calculates Sea’s intrinsic value at $313.84 per share. Compared to the current market price, this implies the stock is trading at a 55.1% discount. This suggests Sea is significantly undervalued by this measure.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Sea is undervalued by 55.1%. Track this in your watchlist or portfolio, or discover 886 more undervalued stocks based on cash flows.
SE Discounted Cash Flow as at Nov 2025
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Sea.
The Price-to-Earnings (PE) ratio is a widely used valuation tool for profitable companies like Sea, as it relates a company’s share price to its actual earnings. It is particularly relevant for investors because it helps gauge how much the market is willing to pay today for a dollar of the company’s annual earnings.
A company’s “normal” or “fair” PE ratio is shaped by growth expectations and risk. Fast-growing businesses or those with lower risk profiles generally command higher PE ratios, since investors are willing to pay a premium for anticipated earnings growth or reliable profits.
Currently, Sea trades at a PE ratio of 58.8x. This is elevated compared to the Multiline Retail industry average of 20.3x and a peer group average of 52.2x. While this appears high on the surface, it is important to look deeper. Simply Wall St’s proprietary “Fair Ratio” for Sea is calculated at 34.1x. The Fair Ratio incorporates more than just earnings; it also considers growth prospects, industry trends, profit margins, market cap, and company-specific risks. As a result, it provides a more nuanced benchmark for a company’s valuation than a simple comparison with peers or the broader industry.
Comparing Sea’s actual PE ratio (58.8x) to its Fair Ratio (34.1x) suggests the market is currently pricing in considerable future earnings growth or perhaps underestimating risks. The stock trades well above its Fair Ratio, indicating it is overvalued according to this metric.
Result: OVERVALUED
NYSE:SE PE Ratio as at Nov 2025
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Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is simply your story or perspective on a company, where you connect your views about its future, such as growth in e-commerce, fintech, or gaming, to concrete numbers such as future revenue, earnings, and fair value estimates. Narratives bridge the gap between a company’s story and a full financial forecast, enabling you to see how your expectations would translate into a fair value for the stock.
On Simply Wall St’s Community page, Narratives are an accessible tool used by millions of investors; they make it easy for you to craft, refine, and share your own investment thesis. Narratives help guide your decisions by showing in real time whether your fair value sits above or below the current price, giving you more information about when to act. Plus, Narratives are dynamic, so when key news or new earnings are released, they update automatically and your outlook can stay current.
For example, Sea’s Narratives range from bullish views forecasting nearly $33.2 billion in revenue and strong margin expansion over the next three years, to more cautious takes projecting risks from intensifying competition and regulatory changes. The most optimistic fair value estimate for Sea is $241.00 per share while the most conservative estimate is $165.00.
Do you think there’s more to the story for Sea? Head over to our Community to see what others are saying!
NYSE:SE Community Fair Values as at Nov 2025
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include SE.
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