Assessing Grab Holdings (NasdaqGS:GRAB) Valuation Following Upbeat Analyst Upgrades and Earnings Momentum

Grab Holdings (GRAB) caught investors’ attention after analysts increased their buy ratings and raised earnings forecasts. With quarterly revenue expected to climb sharply from a year ago, sentiment around the stock has turned more positive.

See our latest analysis for Grab Holdings.

After a rally earlier in the year, Grab’s recent 1-month share price return of 10.6% and 90-day gain of 17.2% show fresh momentum. The 1-year total shareholder return of nearly 61% highlights how sentiment has shifted decisively in favor of growth. With strong analyst optimism and a positive earnings outlook, investors appear to be taking a longer-term view on Grab’s potential, even as the share price experienced a modest pullback this week.

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With impressive gains and upbeat analyst sentiment, the question remains: is Grab’s current share price still undervaluing its future potential, or has the market already priced in the expected surge in growth?

Most Popular Narrative: 28.5% Undervalued

Grab Holdings’ most widely followed valuation narrative places its fair value significantly above the last close of $5.86, suggesting a potential opportunity that diverges from current market pricing. According to BlackGoat, this narrative price target is based on a specific set of financial projections and market assumptions, which are revealed in detail below.

Applying a 35× PE multiple in year five, broadly in line with global ride-hailing peers such as Uber at about 30× and justified by Grab’s market leadership and growth runway, and discounting back at a 9% cost of equity, I arrive at a fair value of $6.02. With the stock trading today (21 August 2025) at $5.02, this implies more than 16% undervaluation.

Read the complete narrative.

Want to see what’s behind this bullish price? The answer is ambitious revenue and margin expansion, plus a tech multiple typically reserved for the global elite. The key drivers are unexpected and could shift how investors view Grab’s potential. Dive in to unlock the full formula behind this 28% discount.

Result: Fair Value of $8.20 (UNDERVALUED)

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

However, rising incentive spending and delays in regulatory approvals for consolidation could quickly disrupt the bullish outlook and sentiment around Grab’s valuation.

Find out about the key risks to this Grab Holdings narrative.

Another View: What Do Market Ratios Signal?

Looking through the lens of price to sales, Grab is trading at 7.8 times sales, much higher than both its industry average (1.3x) and the calculated fair ratio of 3.4x. This premium suggests investors are paying up for expected growth, but also exposes the stock to valuation risk if those expectations aren’t met. Could the share price adjust back toward the fair ratio if sentiment shifts?

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

Build Your Own Grab Holdings Narrative

If you'd rather analyze the numbers yourself or challenge the consensus, you can easily shape your own valuation perspective in just minutes, and Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Grab Holdings.

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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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