We Might See A Profit From Grab Holdings Limited (NASDAQ:GRAB) Soon

Grab Holdings Limited (NASDAQ:GRAB) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. With the latest financial year loss of US$434m and a trailing-twelve-month loss of US$96m, the US$18b market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Grab Holdings will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Grab Holdings

Consensus from 23 of the American Transportation analysts is that Grab Holdings is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$168m in 2025. The company is therefore projected to breakeven around a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 43%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Grab Holdings' upcoming projects, though, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 5.1% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Grab Holdings, so if you are interested in understanding the company at a deeper level, take a look at Grab Holdings' company page on Simply Wall St. We've also compiled a list of key aspects you should further research:

1. Valuation: What is Grab Holdings worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Grab Holdings is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Grab Holdings’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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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.