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1. Company Snapshot

1.a. Company Description

Grab Holdings Limited provides superapps that allows access to mobility, delivery, financial services, and enterprise offerings through its mobile application in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.The company is headquartered in Singapore.

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1.b. Last Insights on GRAB

Grab Holdings Limited's recent performance has been driven by several positive factors. The company's Q2 2025 earnings report showed revenue growth across its On-Demand and Financial Services segments. A $1.5 billion convertible note issuance has also provided potential for major investments or acquisitions, enhancing growth prospects. Additionally, Grab's strong financial health, minimal debt, and dominant position in Southeast Asia's mobility and fintech sectors have contributed to its growth. The company's participation in the Indonesian government's free-meal program has also expanded its reach. Analysts view Grab as an interesting business with a multi-business model, product innovation, and advertising potential.

1.c. Company Highlights

2. Grab's Strong Q3 Earnings Driven by On-Demand GMV Growth

Grab's third-quarter financial performance was robust, with on-demand GMV growing 24% year-on-year to a record high. The company's adjusted EBITDA reached a record $136 million, up 51% year-on-year, while adjusted free cash flow improved by $185 million to $283 million on a trailing 12-month basis. Earnings per share (EPS) came in at $0.01, below analyst estimates of $0.03. Revenue growth is expected to continue, with analyst estimates predicting a 21.1% increase for the next year. The company's strong cash balance and free cash flow generation provide strategic flexibility for future growth initiatives.

Publication Date: Nov -09

📋 Highlights
  • Record On-Demand GMV Growth: 24% YoY increase (20% constant currency) to a record high, driven by 6 million monthly user growth to 48 million.
  • Adjusted EBITDA Surge: Reached $136 million, up 51% YoY, with adjusted free cash flow improving by $185 million to $283 million trailing 12-month total.
  • Financial Services Expansion: Loan dispersals grew 56% YoY to $3.5 billion run rate, on track to exceed $1 billion by 2025 with 15% active advertiser growth.
  • GrabMart Acceleration: Growing 1.5x faster than food delivery, fueled by GrabMore integration, with quick commerce experimentation to unlock new market opportunities.
  • Margin Expansion Targets: Deliveries margins target 4%+ (upward trajectory) and mobility margins aim for 9%+ by 2025, driven by product mix and cost discipline.

Segment Performance

Grab's Mobility and Delivery segments are on track to exit the year at record GMV levels, driven by product-led innovations and affordability offerings like GrabBike and GrabCar Saver. The Financial Services segment is also growing strongly, with a 56% year-on-year growth in loan dispersals, reaching a $3.5 billion run rate. The company's loan book is expected to exceed $1 billion by the end of 2025.

Margin Expansion

The company expects margins to continue to grow from current levels, with deliveries margins expected to reach 4% plus and mobility margins expected to reach 9% plus. The company's focus on affordability is paying off, making it a must-have service, and its strategy is countercyclical, attracting partners to the gig platform and improving supply.

Valuation

Grab's current valuation metrics indicate a 'P/S Ratio' of 7.15 and an 'EV/EBITDA' of 74.95. The 'Free Cash Flow Yield' is 3.05%, indicating a reasonable valuation considering the company's growth prospects. With a 'ROE' of 1.75% and an 'ROIC' of -0.11%, the company's return on equity and invested capital are relatively low, but improving profitability is expected to drive these metrics higher.

Growth Initiatives

Grab is investing in scaling grocery delivery and other products, which are still underpenetrated. The company is also experimenting with new business models, such as quick commerce, to unlock future large TAM. Additionally, Grab has made deliberate investments in autonomous tech to lead the adoption of AV and remote driving across Southeast Asia.

3. NewsRoom

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Grab: Data, Dominance, And A $7B War Chest

Dec -01

Source: seekingalpha.com

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Grab Stock Analysis: Buy or Sell?

Dec -01

Source: fool.com

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Grab: Southeast Asia's Super-App Capitalizing On Region's Growth Potential

Dec -01

Source: seekingalpha.com

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Grab Holdings Limited (NASDAQ:GRAB) Given Average Rating of “Moderate Buy” by Analysts

Dec -01

Source: defenseworld.net

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Grab Holdings: Cautious Buy Amid Fintech Growth And Improving Unit Economics

Nov -30

Source: seekingalpha.com

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Grab Holdings: Undervalued Super-App With Accelerating Path To Profitability

Nov -29

Source: seekingalpha.com

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Grab: A Long Term Winner As Its Marketplace Ecosystem Expands

Nov -28

Source: seekingalpha.com

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Grab: Cash Flow Positive, Expanding Cash Moat, Strong Growth Make It A Buy

Nov -28

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (18.23%)

6. Segments

Deliveries

Expected Growth: 15.6%

Growing demand for online food and grocery delivery, increase in urbanization, and rise in disposable income are key drivers for Grab's deliveries segment growth.

Mobility

Expected Growth: 21.5%

Growing demand for convenient transportation, increasing adoption of digital payments, and expansion into new markets drive Grab Holdings Limited’s Mobility segment growth.

Financial Services

Expected Growth: 20.3%

Grab's financial services segment is expected to grow driven by increasing adoption of digital payments, expanding insurance offerings, and growing lending solutions across Southeast Asia, particularly in Indonesia and Vietnam.

Others

Expected Growth: 15.8%

Grab’s Others segment is expected to grow, driven by increasing adoption of Grab’s other offerings such as GrabExpress, GrabRewards, and GrabMedia, as well as expansion into new markets and services.

7. Detailed Products

Ride-hailing

A platform that connects passengers with drivers, providing real-time ride booking and payment services.

GrabFood

A food delivery service that partners with local restaurants to deliver food to customers.

GrabExpress

A logistics service that provides same-day delivery of packages and documents.

GrabPay

A digital wallet that allows users to make payments online and offline.

GrabFinancial Services

A range of financial services including loans, insurance, and credit scoring.

GrabAds

A platform that allows businesses to advertise to Grab's user base.

8. Grab Holdings Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Grab Holdings Limited faces moderate threat from substitutes, as customers have alternative options for ride-hailing and food delivery services.

Bargaining Power Of Customers

Grab Holdings Limited has a large customer base, but individual customers have limited bargaining power due to the company's dominant market position.

Bargaining Power Of Suppliers

Grab Holdings Limited has a large network of drivers and partners, which reduces the bargaining power of individual suppliers.

Threat Of New Entrants

Grab Holdings Limited faces a high threat from new entrants, as the ride-hailing and food delivery markets are attractive to new players.

Intensity Of Rivalry

Grab Holdings Limited operates in a highly competitive market, with intense rivalry from other ride-hailing and food delivery companies.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 10.95%
Debt Cost 7.99%
Equity Weight 89.05%
Equity Cost 7.99%
WACC 7.99%
Leverage 12.30%

11. Quality Control: Grab Holdings Limited passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Karooooo

A-Score: 6.8/10

Value: 2.7

Growth: 7.7

Quality: 9.0

Yield: 5.8

Momentum: 8.0

Volatility: 7.7

1-Year Total Return ->

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Intuit

A-Score: 5.5/10

Value: 1.2

Growth: 8.2

Quality: 8.6

Yield: 1.0

Momentum: 6.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Grab

A-Score: 5.5/10

Value: 0.5

Growth: 8.6

Quality: 6.4

Yield: 0.0

Momentum: 9.0

Volatility: 8.7

1-Year Total Return ->

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Atlassian

A-Score: 4.7/10

Value: 4.7

Growth: 7.1

Quality: 4.1

Yield: 0.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Constellation Software

A-Score: 4.4/10

Value: 1.2

Growth: 8.8

Quality: 6.1

Yield: 0.0

Momentum: 3.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
FICO

A-Score: 4.0/10

Value: 2.0

Growth: 8.1

Quality: 7.6

Yield: 0.0

Momentum: 2.0

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.26$

Current Price

5.26$

Potential

-0.00%

Expected Cash-Flows