On 9 January 2022, I had initated coverage of Grab when its share price was at $6.80. My fair value estimate was a $2.25-$3.00 range.
A year has passed and we did see Grab's share price falling along with the US Tech bust and for a few months, the market value did trade at around my fair value range. Given that a year has passed, it is a good opportunity to update my fair value of Grab.
What has Changed
Grab has changed its focus from growing at all cost to one focused on profitability and margins. A few changes are:
(i) Reduction in commission given to its riders
(ii) Removal of low value financial transactions such as Grabpay that was enabled for use as AXS transactions in Singapore.
All in all, the company expects continued improvement at the EBITDA level. To shareholders, this is
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