Grab Holdings (NasdaqGS:GRAB): Evaluating Valuation After Strong Earnings, Raised Guidance, and New Tech Investments

Grab Holdings (NasdaqGS:GRAB) is back in the spotlight after reporting a 22% lift in revenue and a 51% jump in adjusted EBITDA, along with new investments in autonomous vehicle technology. The company also raised its fiscal year guidance, reflecting increasing confidence from both management and analysts about its future growth.

See our latest analysis for Grab Holdings.

After a choppy few months, Grab Holdings’ share price is making a comeback, up 14.98% year-to-date and delivering a solid 9% total shareholder return over the past year. With upbeat financials and a strengthened long-term outlook, momentum appears to be building again.

If you’re watching Grab’s turnaround, now is a great time to broaden your investing perspective and discover fast growing stocks with high insider ownership

But with Grab’s share price rebounding and analyst targets still implying upside, an important question arises: Is the stock undervalued given its strong growth and market dominance, or is all the good news already reflected in the price?

Most Popular Narrative: 33.5% Undervalued

Grab Holdings is trading well below what the most-followed narrative suggests is its fair value, with the current price at $5.45 and a much loftier fair value implied by the narrative’s bold long-term outlook. Key assumptions about dominant market share and financial transformation set the tone for what could be a major re-rating if the narrative plays out.

Grab has undergone a dramatic financial transformation.

• Margins: Profit margin hit 3.6% in Q2 2025, up from -8.2% from 2024.

• Revenue: $819M in Q2 2025, +23% YoY. Revenues have compounded at over 20% annually for three years.

• Profitability: First GAAP net profit in Q1 2025. Now profitable for two consecutive quarters.

• Balance Sheet: $7.3B cash vs. $1.7B debt, resulting in net cash, with over 37% of market cap in liquidity.

Read the complete narrative.

How did this stock go from heavy losses to profitability so quickly? This narrative hints at a turnaround built on rapid earnings growth, shifting margins, and ambitious projections. Curious just how high the profit runway goes, and what aggressive assumptions drive that valuation? The full story spells it out in detail.

Result: Fair Value of $8.20 (UNDERVALUED)

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

However, risks remain. Tougher competition or regulatory pushback in Indonesia could quickly test the narrative and shift investor sentiment against Grab.

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

Another View: Valuation Based on Price-to-Sales Ratio

Looking at Grab Holdings’ price-to-sales ratio of 6.9x, there is a sharp disconnect versus the US Transportation industry average (1.1x), its peer group’s 1.6x, and even its own fair ratio of 3.6x. This premium means investors expect a lot of future growth, but it also increases the risk if those expectations slip.

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

Build Your Own Grab Holdings Narrative

If you have a different perspective or want to dive deeper into the numbers, you can easily craft your own Grab Holdings narrative 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 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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