Report
Valens Research

UBER - Embedded Expectations Analysis - 2019 07 16

Uber Technologies, Inc. (UBER:USA) currently trades at a significant premium relative to UAFRS-based (Uniform) Assets, with a 17.2x Uniform P/B. At these levels, the market is pricing in a substantial profitability inflection; however, management appears concerned about intensifying global competition, margin pressures, and their brand.

Specifically, management appears concerned about rising competition from DiDi in South America, and may lack confidence in their ability to compete more on brand and product. Furthermore, they may lack confidence in their ability to increase the percentage of MAPCs that use both Eats and Rideshare, and may appear concerned about the impact their Eats business has on margins.
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.

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Valens Research
Valens Research

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