Grab Is Down 83.5% and Growing. Here's Why It Has the Makings of a Monster Stock for the Next Decade.

Grab (NASDAQ: GRAB) is a Singapore-based company that provides ride-hailing, restaurant delivery, grocery delivery, and other services. In addition to its home market, the company also operates in countries including Indonesia, Thailand, Vietnam, Cambodia, and the Philippines. Because of these characteristics, Grab is sometimes referred to as "the Uber of Southeast Asia."

The company's share price has fallen roughly 47% across 2026, and it trades down roughly 83.5% from its lifetime high. Despite the soggy share performance, the business has actually been posting encouraging growth -- and the stock has the potential to be a massive winner for long-term investors.

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Grab stock offers growth at a reasonable price

As of this writing, Grab is valued at roughly 21 times this year's expected earnings and 2.7 times expected sales. For a company that's growing sales and earnings at robust rates, the company's current valuation actually looks appealing.

In the second quarter, the business's revenue grew 22% year over year to reach $997 million. Meanwhile, the business posted net income of $235 million -- up from roughly $20 million in the prior-year period-- and a margin of roughly 23.5%. Meanwhile, the business had posted $450 million in non-GAAP (adjusted) free cash flow over the trailing-12-month period.

Grab has a dominant position in Southeast Asia's ride-hailing and delivery markets, and it also offers fintech services including digital payments, loans, banking, and insurance to both consumers and merchants. With the company's recently announced acquisition of Atome, Grab is also moving into the buy now, pay later space -- a move that complements its core service offerings.

Grab's services a geographical market that covers eight Southeast Asian countries and includes hundreds of millions of people. Between Indonesia, Thailand, and Vietnam, the company has an addressable market that includes more than 460 million people. As of the end of Q2, the company had an average of roughly 54 million monthly active users.

There are two ways to look at the company's current engagement figures. Grab's numbers show that the company has built an impressive position in its core service categories, but they also suggest that the business still has substantial room for expansion. Between adding new users and increasing average revenue per customer on its platforms, the company seemingly still has plenty of room for expansion ahead.

With the company commanding leadership positions in ride-hailing and deliveries and expanding its fintech offerings, Grab is becoming an "everything" app. Investing in international stocks comes with some extra macroeconomic and geopolitical risks compared to U.S. counterparts, but Grab's business looks rock solid in terms of fundamentals and has plenty of room for continued expansion over the next decade and beyond.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool recommends Grab and Uber Technologies. The Motley Fool has a disclosure policy.