As of September 4, 2025, Uber Technologies Inc's estimated intrinsic value ranges from $8.12 to $118.70 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $118.70 | +27.7% |
| Discounted Cash Flow (5Y) | $77.17 | -17.0% |
| Dividend Discount Model (Multi-Stage) | $78.43 | -15.6% |
| Dividend Discount Model (Stable) | $113.10 | +21.7% |
| Earnings Power Value | $8.12 | -91.3% |
Is Uber Technologies Inc (UBER) undervalued or overvalued?
With the current market price at $92.94, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Uber Technologies Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.94 | 1.02 |
| Cost of equity | 8.2% | 10.6% |
| Cost of debt | 4.6% | 5.5% |
| Tax rate | 6.6% | 24.7% |
| Debt/Equity ratio | 0.05 | 0.05 |
| After-tax WACC | 8.0% | 10.3% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $77 | $164,065M | 82.6% |
| 10-Year Growth | $119 | $250,687M | 69.6% |
| 5-Year EBITDA | $60 | $128,034M | 77.7% |
| 10-Year EBITDA | $94 | $199,837M | 61.9% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $1,807M |
| Discount Rate (WACC) | 10.3% - 8.0% |
| Enterprise Value | $17,617M - $22,545M |
| Net Debt | $3,140M |
| Equity Value | $14,477M - $19,405M |
| Outstanding Shares | 2,085M |
| Fair Value | $7 - $9 |
| Selected Fair Value | $8.12 |
| Metric | Value |
|---|---|
| Market Capitalization | $193819M |
| Enterprise Value | $196959M |
| Trailing P/E | 15.35 |
| Forward P/E | 33.75 |
| Trailing EV/EBITDA | 11.50 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.05 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $35.61 |
| Discounted Cash Flow (5Y) | 25% | $19.29 |
| Dividend Discount Model (Multi-Stage) | 20% | $15.69 |
| Dividend Discount Model (Stable) | 15% | $16.97 |
| Earnings Power Value | 10% | $0.81 |
| Weighted Average | 100% | $88.37 |
Based on our comprehensive valuation analysis, Uber Technologies Inc's intrinsic value is $88.37, which is approximately 4.9% below the current market price of $92.94.
Key investment considerations:
Given these factors, we believe Uber Technologies Inc is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.