---
endpoint: analytics
pattern: Technology
status: done
latency_ms: 204761
conversation_id: 1a421d01-2de5-438a-8fb4-d53c01bfdacf
citations: 12
created: 2026-05-31 21:37:27Z
---

# How does Grab’s valuation compare to peers, and what justifies its premium/discount?

# Grab Holdings (GRAB US) — Valuation vs Peers

## Where Grab Trades Today

Based on CLSA's most recent peer-comp work (priced 19 May 2025 / refreshed 6 June 2025), Grab is a **large-cap, high-multiple, cash-rich** name relative to its global ride-hailing and food-delivery peer set. CLSA carries an **Outperform (O-PF) rating with a US$5.25 SOTP-derived target price**, putting the stock at a market cap of **~US$21bn** as of June 6, 2025 [10].

## Headline Multiple Comparison — 2025CL (CLSA peer table, priced April 2025)

### Delivery cohort [3]

| Company | Ticker | Mkt Cap (US$m) | P/GMV 25CL | P/Sales 25CL | EV/EBITDA 25CL | 3yr Sales CAGR |
|---|---|---|---|---|---|---|
| **Grab** | GRAB US | 17,845 | **0.9x** | **5.0x** | **N/A** (net cash > EV-ex-cash distortion) | **15.9%** |
| Meituan | 3690 HK | 105,428 | 0.3x | 1.9x | 11.5x | 15.1% |
| Uber | UBER US | 154,272 | 0.8x | 3.1x | 18.5x | 14.7% |
| DoorDash | DASH US | 76,733 | 0.8x | 5.9x | 26.2x | 18.4% |
| Delivery Hero | DHER GY | 8,293 | 0.1x | 0.5x | 10.8x | 12.2% |
| Just Eat Takeaway | TKWY NA | 4,533 | 0.2x | 1.1x | 10.4x | (7.1%) |
| Zomato (Eternal) | ETERNAL IN | 27,006 | 2.8x | 11.4x | 304x | 50.0% |
| GoTo | GOTO IJ | 5,654 | 0.16x | 5.4x | 97.5x | 14.4% |
| Deliveroo | ROO LN | 2,704 | 0.3x | 0.9x | 9.1x | 6.3% |
| **Delivery avg ex-Grab** |   | 42,916 | 0.6x | 3.4x | 54.7x | 13.7% |

### Mobility cohort [2]

| Company | Ticker | Mkt Cap (US$m) | P/GMV 25CL | P/Sales 25CL | EV/EBITDA 25CL | 3yr Sales CAGR |
|---|---|---|---|---|---|---|
| **Grab** | GRAB US | 17,845 | **0.9x** | **5.0x** | **N/A** | **15.9%** |
| Uber | UBER US | 154,272 | 0.8x | 3.1x | 18.5x | 14.7% |
| Lyft | LYFT US | 4,809 | 0.3x | 0.7x | 7.7x | 12.0% |
| GoTo | GOTO IJ | 5,654 | 0.16x | 5.4x | 97.5x | 14.4% |
| **Mobility avg ex-Grab** |   | 54,912 | 0.4x | 3.0x | 41.3x | 13.7% |

## Quick Read on Position vs Peers
- **Revenue multiple premium**: Grab trades at **5.0x 2025CL P/Sales**, well above the **3.4x delivery-peer average** and **3.0x mobility-peer average** [3][2]. Among large-cap proxies, Grab is **more expensive than Uber (3.1x)**, slightly cheaper than DoorDash (5.9x), and dramatically below Zomato/Eternal (11.4x).
- **EV/EBITDA is structurally distorted** because Grab carries **US$5.8bn of net cash — about 32% of its market cap, the highest among global peers** [5]. Stripping out cash, the operating EV multiple compresses meaningfully versus the headline P/Sales suggests.
- **vs ASEAN peer GoTo**: GoTo prints a low P/GMV (0.16x) but its EV/EBITDA (97.5x 2025CL, 45.2x 26CL) is markedly higher than Grab's underlying operating multiple [3][2] — i.e., GoTo looks "cheap on GMV" but is structurally less profitable.

## What CLSA's SOTP Says — the Implicit Peer Premium

CLSA explicitly sums Grab in three pieces, applying multiples that embed a **deliberate 15% premium to peers** in the on-demand businesses [1]:

| Segment | Method | Multiple Applied | 2025CL EBITDA / Net Sales | EV (US$m) |
|---|---|---|---|---|
| Deliveries | EV/EBITDA | **~15x** (on 2026CL EBITDA, discounted back 1yr) | 236 | 3,174 |
| Mobility | EV/EBITDA | **~21x** | 488 | 10,414 |
| Financial Services | EV/Sales | **~7x** (in line with SEA Ltd FS) | (266) EBITDA / 344 sales | 2,406 |
| Total EV | | | | **15,995** |
| Less: NCI | | | | (800) |
| Add: Net cash | | | | 5,987 |
| **Equity value** | | | | **21,182** |
| Shares (m) | | | | 3,995 |
| **Value per share** | | | | **US$5.25** |

Source: CLSA SOTP, "Grab — EPS has potential to outperform," 24-Apr-2025 [4]

CLSA's own valuation framework spells it out: *"We value the delivery and mobility businesses at 15x and 21x 2025 EV/Ebitda, respectively, which represent a 15% premium compared to peers. We value financial services at 7x 2025CL EV/sales (similar to SEA Ltd financial services)"* [1][11].

## What Justifies the Premium (Per CLSA & the Tape)

### 1. Superior growth profile
- **~40% adj. EBITDA CAGR projected over the next three years** [5][8], far ahead of mobility/delivery peers where 3yr sales CAGR clusters at 12–18%.
- 3-year sales CAGR of **15.9%** is in line with Uber (14.7%) and Meituan (15.1%), but on a much earlier earnings-inflection trajectory [3][2].

### 2. Best-in-class balance sheet
- **US$5.8bn net cash; 32% net cash/market cap — the highest among global peers** [5]. Backed by **positive free cashflow**, this caps downside risk and creates optionality for M&A or buybacks.

### 3. Regional moat & dominant market structure
- Grab dominates 5+ ASEAN markets; **Indonesia mobility margin (8.4–10.4%) is more than 2x GoTo's 3.8%**, signaling pricing power that justifies a regional premium over Indonesian-only operators [7].
- Major shareholders **SoftBank (14.4%) and Uber (14.0%)** lock up float and validate strategic positioning [7].

### 4. Optionality from potential GoTo M&A
- CLSA scenario work suggests a Grab–GoTo combination could drive **~46% adj. EBITDA accretion (base case; range 33–56%)** through margin uplift in Grab Indonesia (Mobility +1.0%, Delivery +2.1%) plus corporate cost takeout [7][9].
- Even at the rumored US$7.36bn deal price (15.5% premium to GoTo's pre-announcement share price), the implied **EV/EBITDA on FY1 of 36.1x** for GoTo is consistent with paying for synergies, not a value destroyer [6].

## Where the Discount / Caveats Show Up

- **June 9, 2025 trading update**: CLSA flags only **+2% upside** to TP at the prevailing price — most of the optimism is already in the multiple [10].
- **Delivery margin guidance walked back**: management has effectively conceded that the **4% 2026 Deliveries adj. EBITDA margin target will take longer to achieve** [11]. CLSA models only **2.3–3.2% Deliveries adj. EBITDA margin in 2025–27CL** — below mgmt's 4% LT target — because Grab is prioritizing affordability products (Shared Saver, GrabMart) to expand TAM at the cost of near-term margin [11].
- **Recently transacted M&A multiples are lower than the implied GoTo deal price**: DoorDash/Deliveroo (12.5x EV/EBITDA FY1) and Just Eat/Prosus (10.6x) were both struck below the **36.1x FY1 EV/EBITDA implied for the rumored GoTo transaction** [6] — i.e., the market gives Grab credit for synergies that haven't been delivered yet.
- **No corporate action = capped near-term upside**: CLSA's June 9 update notes that absent a GoTo deal, "significant upside from consensus estimates could be limited in the near term" [9].

## Bottom Line

Grab trades at a **15% premium to global ride-hailing/food-delivery peers on segment EV/EBITDA**, and ~65% above the delivery-peer average on 2025CL P/Sales (5.0x vs 3.4x) [1][3]. The premium is **justified by**: (i) the highest net cash/market cap ratio in the global peer set [5], (ii) a ~40% 3-year adj. EBITDA CAGR off a near-breakeven base [8], (iii) ASEAN regional dominance with margin headroom vs Indonesia-only peer GoTo [7], and (iv) embedded M&A optionality. The premium is **at risk** if (a) Deliveries margin expansion continues to disappoint (the 4% LT target is now consensus-skeptical) [11], (b) the GoTo deal does not materialize, removing the synergy catalyst already partly in the price [9], or (c) Uber/SoftBank reduce strategic holdings.

---

**Sources**

[1] Grab — Navigating M&A — CLSA (20 May 2025) — 607959955LinqAlpha.PDF — "Valuation details" paragraph on SOTP methodology and 15% premium to peers
[2] Grab — EPS has potential to outperform — CLSA (24 Apr 2025) — 607956786LinqAlpha.PDF — Mobility peer valuations table (Figure 22)
[3] Grab — EPS has potential to outperform — CLSA (24 Apr 2025) — 607956786LinqAlpha.PDF — Delivery peer valuations table
[4] Grab — EPS has potential to outperform — CLSA (24 Apr 2025) — 607956786LinqAlpha.PDF — SOTP-New table → US$5.25 value per share
[5] Grab — EPS has potential to outperform — CLSA (24 Apr 2025) — 607956786LinqAlpha.PDF — "Raising target price" — 32% net cash/market cap highest amongst global peers, ~40% 3yr adj. EBITDA CAGR
[6] Grab — Navigating M&A — CLSA (20 May 2025) — 607959955LinqAlpha.PDF — Recently transacted M&As table (Deliveroo/DoorDash, Just Eat/Prosus, Grubhub/JET, GoTo/Grab)
[7] Grab — Navigating M&A — CLSA (20 May 2025) — 607959955LinqAlpha.PDF — Potential GoTo M&A page (TP US$5.25, mkt cap US$20.7bn, SoftBank 14.4% / Uber 14.0% ownership)
[8] Grab — Navigating M&A — CLSA (20 May 2025) — 607959955LinqAlpha.PDF — "Maintain O-PF" paragraph — highest net cash to market cap, 3yr 40% Cagr adj. Ebitda, US$5.25 TP
[9] Grab — Grab provides trading update — CLSA (9 Jun 2025) — 607961587LinqAlpha.PDF — Valuation details paragraph
[10] Grab — Grab provides trading update — CLSA (9 Jun 2025) — 607961587LinqAlpha.PDF — Stock data box (priced 6 Jun 2025, TP US$5.25, mkt cap US$21.1bn, +2% potential)
[11] Grab — Growth & profitability equilibrium — CLSA (30 Apr 2025) — 607957730LinqAlpha.PDF — "Valuation details" — 15x deliveries / 21x mobility 2025 EV/Ebitda at 15% premium to peers; Deliveries 4% margin target scaled back
[12] Grab — Navigating M&A — CLSA (20 May 2025) — 607959955LinqAlpha.PDF — DoorDash–Deliveroo vs Grab–GoTo deal-rationale comparison table

## Citations

- [1] **607959955LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2025/05/607959955LinqAlpha.PDF>
- [2] **607956786LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2025/04/607956786LinqAlpha.PDF>
- [3] **607956786LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2025/04/607956786LinqAlpha.PDF>
- [4] **607956786LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2025/04/607956786LinqAlpha.PDF>
- [5] **607956786LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2025/04/607956786LinqAlpha.PDF>
- [6] **607959955LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2025/05/607959955LinqAlpha.PDF>
- [7] **607959955LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2025/05/607959955LinqAlpha.PDF>
- [8] **607959955LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2025/05/607959955LinqAlpha.PDF>
- [9] **607961587LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2025/06/607961587LinqAlpha.PDF>
- [10] **607961587LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2025/06/607961587LinqAlpha.PDF>
- [11] **607957730LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2025/04/607957730LinqAlpha.PDF>
- [12] **607959955LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2025/05/607959955LinqAlpha.PDF>

