As of May 27, 2025, Uber Technologies Inc's estimated intrinsic value ranges from $8.05 to $135.26 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $135.26 | +54.1% |
| Discounted Cash Flow (5Y) | $83.68 | -4.6% |
| Dividend Discount Model (Multi-Stage) | $86.30 | -1.6% |
| Dividend Discount Model (Stable) | $127.56 | +45.4% |
| Earnings Power Value | $8.05 | -90.8% |
Is Uber Technologies Inc (UBER) undervalued or overvalued?
With the current market price at $87.75, the stock appears to be moderately undervalued.
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 | 0.83 | 0.94 |
| Cost of equity | 7.7% | 10.1% |
| Cost of debt | 4.9% | 5.5% |
| Tax rate | 6.6% | 24.7% |
| Debt/Equity ratio | 0.05 | 0.05 |
| After-tax WACC | 7.5% | 9.8% |
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 | $84 | $179,360M | 83.8% |
| 10-Year Growth | $135 | $287,222M | 72.1% |
| 5-Year EBITDA | $57 | $123,192M | 76.3% |
| 10-Year EBITDA | $96 | $204,421M | 60.8% |
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) | 9.8% - 7.5% |
| Enterprise Value | $18,372M - $24,022M |
| Net Debt | $4,368M |
| Equity Value | $14,004M - $19,654M |
| Outstanding Shares | 2,091M |
| Fair Value | $7 - $9 |
| Selected Fair Value | $8.05 |
| Metric | Value |
|---|---|
| Market Capitalization | $183508M |
| Enterprise Value | $187876M |
| Trailing P/E | 14.94 |
| Forward P/E | 31.73 |
| Trailing EV/EBITDA | 10.70 |
| 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% | $40.58 |
| Discounted Cash Flow (5Y) | 25% | $20.92 |
| Dividend Discount Model (Multi-Stage) | 20% | $17.26 |
| Dividend Discount Model (Stable) | 15% | $19.13 |
| Earnings Power Value | 10% | $0.80 |
| Weighted Average | 100% | $98.70 |
Based on our comprehensive valuation analysis, Uber Technologies Inc's weighted average intrinsic value is $98.70, which is approximately 12.5% above the current market price of $87.75.
Key investment considerations:
Given these factors, we believe Uber Technologies Inc is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.