Bloomberg Estimates Shein Valuation Between $22 Billion and $25 Billion

Shein Global Holdings Ltd. is preparing for an initial public offering with a valuation that has declined sharply from previous peaks. Bloomberg Intelligence estimates the company is currently worth between $22 billion and $25 billion, based on 13 to 15 times its projected 2027 earnings.

This estimate is substantially lower than the $66 billion valuation from a 2023 funding round and a 2022 peak of $100 billion. While Reuters reports that the retailer is targeting a valuation between $30 billion and $40 billion, Bloomberg Intelligence analysts indicate that achieving such a figure would require flawless European regulatory execution and a successful transition in marketplace mix.

Several factors have pressured the company's valuation, including slowing revenue growth and profitability disclosed in July. Additionally, the company faces increased shipping costs and tariffs stemming from geopolitical disruptions and a supply chain concentrated in China.