Grab Holdings Limited (GRAB) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Technology · Software - Application
Is Grab Holdings Limited a safe investment right now?
Trading at $4.08, Grab Holdings Limited (GRAB) in the Technology sector carries a FairValueLabs fair value estimate of $2.80 — a margin of safety of -45.7%, placing it in the Overvalued. With an Altman Z-Score of 0.60, the company sits in the distress zone — bankruptcy risk is elevated and warrants close monitoring. Our moat rating stands at 2.9/5 stars (Narrow moat · eroding), suggesting limited pricing power in a competitive landscape.
Could Grab Holdings Limited go bankrupt? Altman Z-Score analysis
Z-Score of 0.6 falls below the 1.8 distress threshold, indicating significant financial stress.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives GRAB's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.2882 | 1.2 | 0.35 |
| B · Retained Earnings / Total Assets | RE / TA | -1.4579 | 1.4 | -2.04 |
| C · EBIT / Total Assets | EBIT / TA | 0.0284 | 3.3 | 0.09 |
| D · Market Cap / Total Liabilities | MCap / TL | 3.2013 | 0.6 | 1.92 |
| E · Revenue / Total Assets | Rev / TA | 0.2812 | 1.0 | 0.28 |
How has GRAB's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 1.7 | Distress |
| 2023 | 2.37 | Gray |
| 2024 | 1.59 | Distress |
| 2025 | 0.6 | Distress |
Source: Calculated from GRAB's latest 10-K filing on SEC EDGAR.
What is Grab Holdings Limited actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $0.07 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $0.06 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $0.09 | 26 analysts consensus |
| Trailing P/E | 68.0x | Current market pricing |
| Fair P/E (β discount) | 40.0x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $6.29 (26 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Grab Holdings Limited have a durable competitive advantage?
Moat rating: 2.9/5.
What makes up GRAB's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 2/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is GRAB's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | -20.2% | — |
| 2023 | -5.2% | Rising |
| 2024 | -0.8% | Rising |
| 2025 | 4.0% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is Grab Holdings Limited's dividend safe?
Grab Holdings Limited's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $3.4B | $2.8B | $1.4B | Rising |
| Net Income | $0.3B | −$0.1B | −$1.7B | Rising |
| Free Cash Flow | −$0.0B | $0.7B | −$0.9B | Rising |
| Gross Margin | 43.2% | 42.0% | 5.4% | Rising |
Common questions about Grab Holdings Limited
Is Grab Holdings Limited at risk of going bankrupt?
Grab Holdings Limited's Altman Z-Score of 0.6 places it in the distress zone. This metric uses balance sheet ratios to predict bankruptcy probability within 2 years. A score below 1.8 signals distress, while above 3.0 indicates safety.
What is Grab Holdings Limited's estimated fair value?
Our valuation model estimates Grab Holdings Limited's fair value at $2.80 per share. The current margin of safety is -45.7%. This estimate uses a PE-based approach with analyst consensus earnings.
Does Grab Holdings Limited have a competitive moat?
Grab Holdings Limited receives a moat rating of 2.9 out of 5 stars, based on ROIC stability, gross margin trends, and estimated switching costs. A rating above 3.5 suggests a durable competitive advantage.
Does Grab Holdings Limited pay a dividend?
Grab Holdings Limited does not currently pay a regular dividend, or has suspended its dividend. Check the dividend safety section for the latest status.
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 20, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
GRAB analysis methodology: How we calculate fair value, Z-Scores, and moat ratings