Report
Valens Research

UBER - Embedded Expectations Analysis - 2022 02 28

Uber Technologies (UBER) currently trades at a premium to Uniform assets, with a 6.2x Uniform P/B (V/A′).

At these levels, markets are pricing in expectations for Uniform ROA to inflect positively to 20%, accompanied by 12% Uniform asset growth going forward.

Similarly, analysts expect Uniform ROA to improve to 7% by 2022, albeit with much stronger 20% Uniform asset growth.

If sustained going forward, these levels would suggest 46% equity downside. That said, as an early-stage growth name, it is not uncommon to see expectations for a material positive inflection.

Moreover, the firm's most recent earnings call suggests management may have concerns about growth, business offerings, and pandemic impacts.
Underlying
Uber Technologies Inc.

Uber Technologies provides ride hailing services. The company develops application for road transportation, navigation, ride sharing, and payment processing solutions. The company serves customers in the United States and Canada, Latin America, Europe, Middle East, and Asia Pacific markets, excluding its discontinued China operations.

Provider
Valens Research
Valens Research

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