3 weeks ago
Shein IPO Valuation Falls Short of $30 Billion Target
Imagine a huge online clothing store called Shein that sells very cheap, trendy clothes.
Shein wants to sell part of the company to investors, which is called an IPO.
Before that happens, experts try to guess how much the whole company is worth.
One group called Bloomberg Intelligence thinks Shein is worth between $22 billion and $25 billion.
That is less than the $30 billion some investors were hoping for.
Shein used to be worth a lot more: about $100 billion in 2022, and $66 billion in 2023.
The company's growth has slowed down, and shipping costs and new taxes called tariffs have made things harder.
Shein says it is worth more, around $30 to $40 billion.
In the end, only time will tell what price investors agree to pay.
Bloomberg Intelligence estimates Shein's IPO valuation at $22 billion to $25 billion, below the roughly $30 billion some investors have pushed for.
The estimate is less than half the $66 billion Shein fetched in its 2023 funding round and far below its peak valuation of about $100 billion in 2022.
BI values Shein at 13 to 15 times projected 2027 earnings of $1.67 billion, with earnings expected to grow about 20% annually through 2029.
Reuters reports Shein is aiming for a $30 billion to $40 billion valuation, which BI says would require a clean marketplace mix shift and flawless European regulatory execution.
Valuation pressures include slowing revenue growth and profitability disclosed in July, US tariffs, and disruption stemming from the Middle East war.
- Who
- Shein Global Holdings Ltd., the fast-fashion retailer preparing for an IPO, and Bloomberg Intelligence analysts Catherine Lim and Jason Zhu.
- What
- Bloomberg Intelligence estimated Shein's IPO valuation at $22 billion to $25 billion, below the roughly $30 billion some investors sought.
- Where
- Shein is headquartered in Singapore, with its supply chain concentrated in mainland China.
- When
- The note was published on Monday, as Shein prepares for one of the year's biggest initial public offerings.
- Why
- Because of slowing growth, freight and tariff shocks, and regulatory pressures that have weighed on earnings.
Lower Valuation Estimate
Higher Valuation Target
Shein's IPO Valuation
Lower Valuation Estimate
Bloomberg Intelligence values Shein at $22 billion to $25 billion, or 13 to 15 times projected 2027 earnings, arguing that a higher price would require investors to underwrite a clean marketplace mix shift and flawless European regulatory execution.
Higher Valuation Target
Some investors have pushed for a roughly $30 billion valuation, and Reuters reports Shein is aiming for $30 billion to $40 billion, reflecting its position as a global fast-fashion retailer with a supply chain designed to respond quickly to consumer trends.
Key facts
- Company
- Shein Global Holdings Ltd.
- Bloomberg Intelligence valuation
- $22 billion to $25 billion
- Investor push
- Roughly $30 billion
- Reported Shein target
- $30 billion to $40 billion
- 2023 funding round valuation
- $66 billion
- 2022 peak valuation
- About $100 billion
- Valuation basis
- 13 to 15 times projected 2027 earnings
- Projected 2027 earnings
- $1.67 billion, growing ~20% annually through 2029
Quotes
Catherine Lim and Jason Zhu
Bloomberg Intelligence analysts
“"Shein’s valuation should assume a normalized growth and earnings outlook starting in 2027 rather than a depressed 2026 baseline," they wrote”
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Sources
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