If you are wondering whether Sea’s current share price still reflects a reasonable entry point or not, it helps to break the story down into what the recent returns and valuation numbers are actually telling you.
The stock last closed at US$122.83, with returns of a 0.9% decline over 7 days, a 2.3% decline over 30 days, a 6.6% decline year to date, a 5.5% gain over 1 year and an 83.3% gain over 3 years, set against a 44.1% decline over 5 years.
These mixed returns leave many investors trying to work out whether recent price levels reflect changing expectations for Sea’s long term prospects or just shifting risk appetite in the market. With that in mind, it becomes even more important to ground the conversation in clear valuation checks…
