UBER - Embedded Expectations Analysis - 2021 04 08
Uber Technologies, Inc. (UBER:USA) currently trades at a premium to UAFRS-based (Uniform) assets, with a 9.2x Uniform P/B. At these levels, the market has expectations for profitability to inflect positively, but management appears concerned about their global expansion plans, Uber pass and Eats pass membership growth, and their Mobility and Delivery segment growthSpecifically, management may lack confidence in their ability to execute their global expansion plans and maintain Delivery segment market share. In addition, they may be exaggerating the synergies between their Mobility and Delivery segments, the growth opportunities for the Mobility segment, and the potential of their Postmates acquisition. Furthermore, management may lack confidence in their ability to sustain Uber pass and Eats pass membership growth, encourage cross-platform usage, and maintain first-time eater acquisition through their app enhancements. Moreover, they may have concerns about the Freight segment's performance, their decision to divest Uber Elevate and their Advanced Technologies Group, and the adoption rate of grocery delivery
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.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.