UBER - Embedded Expectations Analysis - 2021 09 09
Uber Technologies, Inc. (UBER:USA) currently trades at a premium to UAFRS-based (Uniform) assets, with a 6.8x Uniform P/B. At these levels, the market has expectations for profitability to inflect positively, but management appears concerned about their delivery businesses, freight investments, and New Verticals business ramp-up.Specifically, management may lack confidence in their ability to maintain their market leadership in on-demand delivery, improve Postmates delivery metrics, and increase their customers' willingness to do business with Uber. Additionally, they may be concerned about mobility and delivery trends, their Freight business investments, and the progress of their New Verticals business ramp-up. Furthermore, management may be overstating the degree to which their Rides app is serving as a marketing channel for their delivery business and their ads revenue run rate. Finally, they may have concerns about driver earnings satisfaction and the progress of their efforts to improve network efficiencies.
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.