One-glance verdict
Undervalued
$162.18 our estimate vs market $75.41
Wall Street consensus: $101.81 (-37.2% lower than our fair-value estimate)
54% below our estimate, below the bear case
Fundamentals snapshot
Uber Technologies, Inc.
UBER · NYQ · Technology · Software - Application
Current price
$75.41
52-week range
$65.41 - $101.99
Market cap
$154.02B
Balance sheet
Watch
12.65x Strong cushion
Net debt $9.34B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 6.2% last year.
- Reward Returns 37.2% on equity, ahead of 66% of its peers.
- Risk Forward P/E (17.2x) is higher than trailing (16.5x) - earnings are expected to drop.
- Risk Insider ownership is only 0.2% (peer median: 1.9%).
What this company does
Uber Technologies, Inc.
Uber is a technology company that makes most of its money from its two well-known app-based services: connecting riders with drivers for transportation and delivering food and other items from local businesses through Uber Eats. The company is also growing its freight business, which acts like an Uber for trucking, by connecting companies that need to ship goods with available carriers. By building a large ecosystem (a network of connected services), Uber aims to become the main app people use for moving themselves, their food, and their products from one place to another.
How the company got here
Founded in 2009 as UberCab, the company started with a simple idea: to let people request a ride from their phone. This concept of connecting drivers with riders through an app quickly grew, disrupting the traditional taxi industry in cities worldwide. Over the years, Uber expanded beyond just rides, launching services for food delivery and freight shipping. The company faced challenges, including controversies over its business practices and the impact of the pandemic on its ride-hailing business, but has since focused on diversifying its offerings and achieving profitability.
What it actually does
At its core, Uber is a technology company that plays matchmaker. It runs smartphone apps that connect people who need a ride with available drivers, or people who are hungry with restaurants and couriers. The company doesn't own the cars or employ the drivers and couriers directly; instead, it operates as a massive network, taking a percentage of the fee for each ride or delivery it facilitates. This approach is known as an asset-light business model (a strategy where a company has relatively few capital assets compared to its operations).
Mobility
This is the original and largest part of Uber's business, making up more than half of its total revenue. It's the ride-hailing service most people are familiar with, where you can use the app to book a ride in a car. Riders pay for the trip, and Uber takes a commission (a percentage of the fare) before paying the driver. This segment also includes newer options like electric bike and scooter rentals, as well as partnerships with public transit.
Delivery
Commonly known as Uber Eats, this segment is a fast-growing part of the company, contributing about a third of total revenue. It allows you to order food from restaurants and have it delivered to your door. Restaurants pay Uber a commission on each order, and customers pay a delivery fee. This business has expanded beyond just restaurant meals to include groceries, convenience items, and alcohol delivery.
Freight
This is a smaller but significant part of Uber's business that many consumers may not be aware of. Uber Freight connects truck drivers with companies that need to ship goods, acting like a digital freight broker. Shippers (companies sending goods) pay to have their loads transported, and Uber takes a percentage of that payment as its fee for matching them with a carrier (the trucking company or independent driver). The goal is to make the process of finding and booking shipments more efficient than the traditional method of phone calls and faxes.
What management is betting on now
Uber's leadership is focused on making its platform a one-stop shop for all transportation and delivery needs. A key priority is growing its membership program, Uber One, which offers discounts on both rides and deliveries to encourage customer loyalty. The company is also investing in advertising within its apps, allowing restaurants and other businesses to pay for better visibility to its large user base. Additionally, Uber is looking towards the future by partnering with companies developing autonomous (self-driving) vehicles and expanding its services for corporate clients.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$2.11B
FY2024 Q4
$1.71B
FY2025 Q1
$2.25B
FY2025 Q2
$2.48B
FY2025 Q3
$2.23B
FY2025 Q4
$2.81B
FY2026 Q1
$2.29B
FY2026 Q2
$2.79B
Revenue
$14.19B
Net income
$2.39B
Diluted EPS
1.17
Operating cash flow
$2.86B
Free cash flow
$2.79B
Fetching…
Sources
Revenue
$13.20B
Net income
$263.00M
Diluted EPS
0.13
Operating cash flow
$2.35B
Free cash flow
$2.29B
Fetching…
Sources
Revenue
$14.37B
Net income
$296.00M
Diluted EPS
0.16
Operating cash flow
$2.88B
Free cash flow
$2.81B
Fetching…
Sources
Revenue
$13.47B
Net income
$6.63B
Diluted EPS
3.11
Operating cash flow
$2.33B
Free cash flow
$2.23B
Fetching…
Sources
Revenue
$12.65B
Net income
$1.35B
Diluted EPS
0.63
Operating cash flow
$2.56B
Free cash flow
$2.48B
Fetching…
Sources
Revenue
$11.53B
Net income
$1.78B
Diluted EPS
0.83
Operating cash flow
$2.32B
Free cash flow
$2.25B
Fetching…
Sources
Revenue
$11.96B
Net income
$6.88B
Diluted EPS
3.21
Operating cash flow
$1.75B
Free cash flow
$1.71B
Fetching…
Sources
Revenue
$11.19B
Net income
$2.61B
Diluted EPS
1.20
Operating cash flow
$2.15B
Free cash flow
$2.11B
Fetching…
Sources
Is it cheap or expensive?
Fair value $162.18 vs current price $75.41
Wall Street consensus is the average analyst price target: $101.81 (-37.2% lower than our fair-value estimate).
Our most-likely fair value is $162.18 a share — about 115.1% above today's price of $75.41, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $9.3B. Interest coverage 12.6x.
Net debt
$9.34B
Interest coverage
12.65x
Uber Technologies, Inc.'s profit covers its interest bill about 12.6 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
UBER
BASELINE
Uber Technologies, Inc.
Total debt $14.73B Interest coverage 12.65x This is the baseline the peer rows are being compared against.
Total debt $1.29B Interest coverage -9.08x -100% vs UBER This peer has almost no interest-payment cushion compared with UBER.
Total debt $3.30B Interest coverage 362.50x +2,766% vs UBER Carries about 28.7x more debt cushion than UBER.
Total debt $2.50B Interest coverage 30.65x +142% vs UBER Carries about 2.4x more debt cushion than UBER.
Total debt $2.03B Interest coverage 3.13x -75% vs UBER Carries about 4.0x less debt cushion than UBER.
Total debt $34.00M Interest coverage 8.74x -31% vs UBER Carries about 1.4x less debt cushion than UBER.
What you should know
The case for and against UBER
3 Rewards
2 Risks
Rewards
-
Revenue grew 6.2% last year.
-
Returns 37.2% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Forward P/E (17.2x) is higher than trailing (16.5x) - earnings are expected to drop.
-
Insider ownership is only 0.2% (peer median: 1.9%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
16.54x
Forward P/E
17.21x
P/B
5.63x
P/S
2.79x
EV/EBITDA
22.29x
PEG ratio
6.38x
Profitability
How much profit each dollar creates
Gross margin
40.8%
Operating margin
13.3%
Net margin
17.3%
ROE
37.2%
ROA
6.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.52x
Current ratio
0.84x
Quick ratio
0.65x
Total debt
$14.73B
Total cash
$5.39B
Growth
How the business has been compounding
Revenue TTM
$55.23B
Revenue 5Y CAGR
31.4%
EPS TTM
4.56
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$10.42B
Free CF TTM
$9.76B
FCF margin
17.7%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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