"Bloomberg Intelligence": Shein's valuation between $22 billion and $25 billion ahead of IPO

The specialized position of Shein Global Holdings Ltd in the fast-fashion sector supports a valuation ranging from $22 billion to $25 billion, according to Bloomberg Intelligence, placing a new estimate on one of the biggest questions surrounding the retailer as it prepares for one of the largest initial public offerings this year.

Bloomberg Intelligence’s valuation of Shein is approximately 13 to 15 times its expected 2027 earnings, using that year as a more moderate baseline after shipping cost shocks and tariffs are expected to pressure its 2026 results. Consumer and technology sector analysts Catherine Lim and Jason Choo expect earnings to recover to $1.67 billion in 2027, then grow by about 20% annually through 2029.

In a note on Monday, they wrote: “Shein’s valuation should assume normal growth and earnings prospects starting in 2027, rather than relying on a low base in 2026.” The valuation reflects Shein’s unusual position as both a China-linked e-commerce platform and a global fast-fashion company with a supply chain designed to respond quickly to changing consumer trends.

The estimate is below a valuation of nearly $30 billion that some investors have pushed for, and less than half of Shein’s $66 billion valuation in a 2023 funding round. The company was valued at around $100 billion at its peak in 2022, highlighting how expectations have receded amid slowing growth and mounting regulatory and trade pressures. The company disclosed in July that revenue and profitability growth had slowed, adding further pressure on its valuation.

Shein is now targeting a valuation between $30 billion and $40 billion, according to Reuters earlier this month. Such a range would place the company at a premium compared to the average of global peers in e-commerce and fast fashion, as well as China-linked platforms, according to Bloomberg Intelligence.