Uber Technologies Inc (UBER)

Conclusion

Uber Technologies operates ride-hailing, food and grocery delivery, and freight marketplaces across North America, Latin America, Europe, the Middle East, Africa and Asia Pacific. At a price of 71.17 USD on 2026-11-09, the company has a market capitalisation of 145.3 billion USD.

The verdict is undervalued. The price-to-sales ratio of 2.57 is below its ten-year median of 3.88, and the price-to-book ratio of 5.25 is below its median of 7.77. The DCF gives 117.90 USD per share at a discount rate of 11.4%. The fair value band runs from 89.73 to 134.59 USD with a midpoint of 112.16 USD, a margin of safety of 57.6% at the current price. The reverse DCF implies growth of 8.4% a year, against a five-year revenue CAGR of 36.1%.

The strongest numbers are free cash flow conversion of 300.8% on a trailing twelve-month basis, ROIC of 15.1% against a WACC of 10.7%, and an Altman Z-score of 3.03. The weakest are a share count that has grown at 3.87% a year over five years, 4 misses in the last 8 quarters, and a 90-day estimate change for next year of -0.08%, with 3 downward revisions against 2 upward in the last 30 days.

Financial health

Financial strength is green, held up by the interest coverage of 10.6x, a net debt to EBITDA of 1.25x, a current ratio of 1.23 and an Altman Z-score of 3.03. Debt to equity stands at 0.64, and the quick ratio is 1.00. The Altman Z-score of 3.03 falls in the safe zone, although the model was designed for manufacturers and Uber is a technology company. Insolvency risk is low, at about 0.2% by the estimate of the Ohlson model over one to two years, based on figures as of 2025-12-31. Net debt has fallen over the last five years, with debt growing by a negative 33.0% a year against revenue growth over the same period.

Earnings quality

Earnings quality is yellow. Free cash flow conversion is strong, at 300.8% on a trailing twelve-month basis and 161.8% over five years, and the accrual ratio is -0.1%, which points to cash-backed earnings. The Beneish M-score of -2.40 is in the unlikely range for manipulation. The Piotroski score is 6 out of 9. Stock-based compensation equals 3.65% of revenue, and free cash flow after it is 8.36 billion USD. The share count has grown at 3.87% a year over five years, which is dilution rather than buybacks. Over the last 8 quarters, the company beat estimates 4 times and missed 4 times, with an average surprise of 89.99%.

Profitability

Profitability is green. The gross margin is 43.2% against a ten-year median of 40.9%, and the operating margin is 12.8% against a median of -25.5%. The net margin is 6.1% against a median of -6.2%. ROIC is 15.1% against a WACC of 10.7%, and the given ROIC minus WACC value is 4.4%, so the company creates value above its cost of capital. ROIC's five-year median is 17.5%. Return on equity is 12.5%. The DuPont split for 2025 shows a net margin of 19.3%, an asset turnover of 0.84 and an equity multiplier of 2.29. The equity multiplier shows that leverage contributes to the return, though it stays moderate.

Growth

Growth is green. Revenue compounded at 17.7% over three years, 36.1% over five years and 38.6% over ten years. Revenue grew in 9 of the last 10 comparable years. Free cash flow per share compounded at 185.7% over three years, a rate that reflects a low starting base. Earnings per share growth is not available, because the input has no EPS CAGR. Growth has slowed from its five-year pace: the three-year revenue CAGR is 17.7%, against 36.1% over five years.

Valuation

Valuation is green, with the verdict of undervalued and a margin of safety of 57.6%. Price-to-sales of 2.57 is 33.8% below its ten-year median of 3.88, and price-to-book of 5.25 is 32.4% below its median of 7.77. The P/E of 41.9, EV/EBITDA of 24.9 and price to free cash flow of 13.9 have too few historical points for a reliable median comparison. The DCF gives 117.90 USD per share at a discount rate of 11.4%, with 52.8% of value in the terminal value. The fair value from historical multiples is 106.41 USD. The fair value is an order of magnitude built on fixed assumptions, including a 5% equity risk premium and capped long-term growth, and is not a price target. The reverse DCF implies growth of 8.4% a year, against a revenue CAGR of 36.1% over five years. The company pays no dividend.

Risks

Earnings quality is the main weak point. Share count growth of 3.87% a year dilutes shareholders, and stock-based compensation of 3.65% of revenue is a real cost. The estimate trend is also soft: next year's EPS estimate changed by -0.08% over 90 days, and 3 downward revisions outweighed 2 upward in the last 30 days. Missing 4 of 8 earnings quarters means that the company's results are less reliable than its cash flow suggests. Growth expectations embedded in the price are modest, but the DCF relies heavily on the terminal value, so a change in long-term assumptions would move the result. The company does not report its interest expense, so its interest burden can be judged only from coverage. This analysis has no debt maturity schedule and no revenue by segment, so refinancing risk and the split between mobility, delivery and freight cannot be assessed.