<div id="readability-page-1"><div><p>Sea (SE) is back in focus after reporting strong first quarter 2026 results across its e commerce, digital financial services, and gaming segments, alongside ongoing share repurchases under its US$1b buyback program.</p> <p>See our latest analysis for Sea.</p> <p>The strong first quarter update and continued share repurchases have coincided with a 1 day share price return of 4.99% and a 7 day share price return of 7.98%. However, the share price is still down 28.92% year to date and the 1 year total shareholder return is down 43.33%, while the 3 year total shareholder return remains positive.</p> <p>If you are looking beyond Sea for other growth stories in technology and payments, this could be a moment to scan 63 profitable AI stocks that aren't just burning cash for additional ideas.</p> <p>With Sea trading at US$93.46, sitting at a sizeable discount to both analyst price targets and some intrinsic value estimates, the key question is whether this gap signals a fresh buying opportunity or indicates that the market is already pricing in future growth.</p> <h2>Most Popular Narrative: 32.1% Undervalued</h2> <p>At $93.46, the most followed narrative pegs Sea's fair value much higher, framing the gap as a question of how far its moat and execution can go.</p> <blockquote> <p><em>Accelerating mobile internet adoption and rising youth digital literacy in Southeast Asia and Brazil are fueling user growth across Sea's e-commerce (Shopee), fintech (Monee), and gaming (Garena) businesses. This supports robust double-digit revenue growth and expands the company's total addressable market for the long term.</em></p> </blockquote> <p><em>Read the complete narrative.</em></p> <p>Curious what kind of revenue trajectory and profit margins are baked into that fair value, and which future earnings multiple ties it all together? The narrative lays out a clear earnings path, ambitious top line expansion, and a premium valuation hurdle that has to hold for the numbers to make sense.</p> <p><strong>Result: Fair Value of $137.64 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, this hinges on Shopee defending its market share against rising rivals in Brazil and Southeast Asia, and on Garena avoiding a sharp slowdown in Free Fire engagement.</p> <p>Find out about the key risks to this Sea narrative.</p> <h2>Another Way To Look At Valuation</h2> <p>While the narrative and analyst targets point to undervaluation, the current P/E of 35.7x tells a different story. It sits well above the peer average of 24.4x and the 32.3x fair ratio, which suggests investors are already paying up and taking on extra valuation risk. Which signal do you trust more right now?</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/3daf11d8-d4c1-46ba-9365-f1f29f727595/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTA1LTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/3daf11d8-d4c1-46ba-9365-f1f29f727595/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTA1LTI4"/><figcaption>NYSE:SE P/E Ratio as at May 2026</figcaption></figure><h2>Next Steps</h2> <p>Given the mixed signals on valuation and sentiment, this is a good moment to look through the data yourself and decide how comfortable you feel with the current risk reward trade off. To see what the optimism is built on, take a closer look at the 3 key rewards.</p> <h2>Looking for more investment ideas?</h2> <p>If you stop here, you only see part of the opportunity set, so use the screeners below to uncover stocks that better match your goals and comfort level.</p> <ul> <li>Spot potential bargains early by hunting through screener containing 22 high quality undiscovered gems before they land on everyone else's radar.</li> <li>Strengthen your core holdings by scanning the solid balance sheet and fundamentals stocks screener (45 results) for companies with healthier finances.</li> <li>Dial down portfolio swings by focusing on the 64 resilient stocks with low risk scores that still meet your return expectations.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p><div><h3><strong>New: </strong>Manage All Your Stock Portfolios in One Place</h3><p>We've created the <strong>ultimate portfolio companion</strong> for stock investors, <strong>and it's free.</strong></p><p>• Connect an unlimited number of Portfolios and see your total in one currency<br/>• Be alerted to new Warning Signs or Risks via email or mobile<br/>• Track the Fair Value of your stocks<br/></p><p>Try a Demo Portfolio for Free</p></div></div></div>

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<p>Sea (NYSE:SE) reported strong Q1 2026 results across its segments and is executing a US$1b buyback program. Despite a recent share price increase of 4.99%, it remains down 28.92% year-to-date. Analysts suggest the stock is undervalued at US$93.46, with a fair value estimate of $137.64. However, the current P/E ratio of 35.7x exceeds the peer average, indicating potential valuation risks. Investors are encouraged to assess the risk-reward trade-off and explore additional investment opportunities.</p>

- Sea Limited has reported strong first quarter 2026 results in e-commerce, digital financial services, and gaming, amid a $1 billion share repurchase program.  
- Despite recent gains, Sea's share price remains down 28.92% year-to-date, with questions about whether its current valuation at $93.46 indicates a buying opportunity or reflects expected future growth.  
- The narrative suggests Sea is undervalued with a fair value estimate of $137.64, but rising competition and high P/E ratios present risks that investors should consider.

Sea (NYSE:SE) Valuation Check After Strong Q1 2026 Update And Ongoing Buybacks