Grab Stock To $4?

Our machine-driven multi-factor assessment suggests that it may be time to reduce exposure to GRAB stock. We are primarily concerned current valuation and a price of $4 may not be out of reach. We believe there is not much to fear in GRAB stock given its overall Strong operating performance and financial condition. But given its Very High valuation, the stock appears Relatively Expensive.

Below is our assessment:

GRAB stock may swing. A balanced allocation doesn’t. Empirical Asset Management blends strategy and discipline to smooth out market noise.

Let’s get into details of each of the assessed factors but before that, for quick background: With $24 Bil in market cap, Grab provides transportation, delivery, mobile payment, and financial services across Southeast Asia through an integrated fintech and mobility platform.

[1] Valuation Looks Very High

This table highlights how GRAB is valued vs broader market. For more details see: GRAB Valuation Ratios

[2] Growth Is Very Strong

• Grab has seen its top line grow at an average rate of 71.1% over the last 3 years
• Its revenues have grown 17% from $2.5 Bil to $2.9 Bil in the last 12 months
• Also, its quarterly revenues grew 18.4% to $773 Mil in the most recent quarter from $653 Mil a year ago.

This table highlights how GRAB is growing vs broader market.

[3] Profitability Appears Weak

• GRAB last 12 month operating income was $13 Mil representing operating margin of 0.4%
• With cash flow margin of 32.1%, it generated nearly $936 Mil in operating cash flow over this period
• For the same period, GRAB generated nearly $23 Mil in net income, suggesting net margin of about 0.8%

This table highlights how GRAB profitability vs broader market.

[4] Financial Stability Looks Very Strong

• GRAB Debt was $385 Mil at the end of the most recent quarter, while its current Market Cap is $24 Bil. This implies Debt-to-Equity Ratio of 1.6%
• GRAB Cash (including cash equivalents) makes up $5.9 Bil of $9.6 Bil in total Assets. This yields a Cash-to-Assets Ratio of 61.0%

[5] Downturn Resilience Is Moderate

GRAB saw an impact slightly better than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• GRAB stock fell 86.5% from a high of $17.06 on 11 November 2021 to $2.31 on 24 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• The stock is yet to recover to its pre-Crisis high
• The highest the stock has reached since then is $6.45 on 22 September 2025 , and currently trades at $5.94

 
2020 Covid Pandemic

• GRAB stock fell 5.6% from a high of $13.62 on 22 December 2020 to $12.86 on 31 December 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 7 January 2021

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read GRAB Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – S&P 500, Russell, and S&P midcap. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.