LYFT - Embedded Expectations Analysis - 2019 04 15
Lyft, Inc. (LYFT:USA) currently trades well above corporate averages relative to UAFRS-based (Uniform) Assets, with a 21.1x Uniform P/B. At these levels, the market is pricing in expectations for Uniform ROA to materially expand, and inflect positively, improving from -117% in 2018 to 32% in 2023.In order to justify current valuations and meet market expectations, the firm must successfully expand its market share, fundamentally change auto buying trends, and become a leader in automated vehicle technology, while also overcoming margin and competitive pressures.
Lyft operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. The company provides Ridesharing Marketplace, which facilitates lead generation, billing and settlement, support, and related activities to enable drivers to provide their transportation services to riders. The company also offers a network of shared bikes and scooters in various cities to address the needs of riders for shorter routes; Express Drive program, a flexible car rentals program which connects drivers who need access to a car with third-party rental car companies; and concierge for organizations to manage the transportation needs of their customers and employees.
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