Sea Limited (NYSE:SE): Evaluating Valuation

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12-10

Sea Limited (NYSE:SE): Evaluating Valuation After Shopee’s Strong Q3 2025 E-Commerce Growth


Simply Wall St

Reviewed by Simply Wall St


Sea (NYSE:$Sea Ltd(SE)$  ) has been making waves after reporting solid growth in its e-commerce operations during the third quarter of 2025. Investors are watching closely as rising revenue and transaction volumes support a positive growth outlook for Shopee.


See our latest analysis for Sea.


Momentum is shifting for Sea, with recent news of a major $1 billion share buyback and strong e-commerce growth helping attract renewed investor interest. While the stock’s share price has climbed 28% year-to-date, a 17.98% total shareholder return over the past year highlights the company’s ability to reward long-term holders, despite short-term volatility and recent options market buzz.


If rising e-commerce trends interest you, now is an ideal time to discover fast growing stocks with high insider ownership


With Sea’s stock gaining momentum and analyst price targets suggesting significant upside, the key question remains: Is there untapped value left for investors, or has the market already accounted for Sea’s future growth potential?


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Most Popular Narrative: 30% Undervalued

Sea’s most widely followed narrative places fair value at $192.68, significantly above the last close of $134.26. This creates an opportunity to explore what is fueling this positive outlook and why analysts think shares still have room to run.


Accelerating mobile internet adoption and rising youth digital literacy in Southeast Asia and Brazil are fueling user growth across Sea's e-commerce (Shopee), fintech (Monee), and gaming (Garena) businesses. This supports robust double-digit revenue growth and expands the company's total addressable market for the long term.


Read the complete narrative.


Curious about the numbers behind this bullish narrative? The fair value is based on high growth rates, surging digital engagement, and ambitious margin expansion targets. Want to know what these analysts are projecting and what could affect the outlook? Dive in to find out what’s driving that aggressive price target.


Result: Fair Value of $192.68 (UNDERVALUED)


Have a read of the narrative in full and understand what's behind the forecasts.


However, lingering execution risks and fierce competition in key markets could pressure Sea’s margins. These factors may serve as catalysts for shifting sentiment among investors.


Find out about the key risks to this Sea narrative.


Another View: What Do Market Multiples Say?

Looking at valuation from a market ratio perspective tells a different story. Sea’s price-to-earnings ratio stands at 56x, which is significantly higher than both the global industry average of 19.8x and the peer average of 51.7x. Compared to the fair ratio of 33.9x, Sea appears expensive by this method. This highlights a gap that could mean more downside risk should expectations falter. Is this high multiple justified by future growth, or is optimism running too far ahead?


See what the numbers say about this price — find out in our valuation breakdown.



NYSE:SE PE Ratio as at Nov 2025


Build Your Own Sea Narrative

If you have a different perspective or want to take a hands-on approach, you can quickly piece together your own data-driven story in just a few minutes. Do it your way


A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Sea.


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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.


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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com


About NYSE:SE

Sea

Through its subsidiaries, operates as a consumer internet company in Southeast Asia, Latin America, the rest of Asia, and internationally.


Flawless balance sheet with high growth potential.


See The Free Research Report

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