Uber(US:UBER) Acquirersmultiple·2025-09-18 23:38Core Insights - Uber Technologies Inc. has achieved profitability on both net income and free cash flow basis after years of operating losses [2] - The company operates in over 70 countries and benefits from strong network effects and diversified business lines, including Mobility, Delivery, and Freight [2] - Despite recent profitability, Uber faces challenges from competitive dynamics, regulatory risks, and ongoing capital requirements [2] DCF Analysis - The Discount Rate is set at 10% and the Terminal Growth Rate at 3% [3] - Forecasted Free Cash Flows (in billions) are projected as follows: - 2025: $7.5 → PV: $6.82 - 2026: $8.5 → PV: $7.02 - 2027: $9.5 → PV: $7.14 - 2028: $10.5 → PV: $7.20 - 2029: $11.5 → PV: $7.21 - Total Present Value of Free Cash Flows is $35.39 billion [3] - Terminal Value calculated using the perpetuity growth model is $169.07 billion, with a Present Value of Terminal Value at $106.09 billion [3] Enterprise and Equity Value - The Enterprise Value is calculated as $141.48 billion, combining the Total Present Value of Free Cash Flows and Present Value of Terminal Value [3] - Net Debt is reported as $4.15 billion, with Cash at $6.98 billion and Total Debt at $11.13 billion [4] - The Equity Value is $137.33 billion, leading to an Intrinsic Value per Share of $65.10 based on 2.11 billion shares outstanding [4] Conclusion - The DCF Value is estimated at $65.10, while the current market price is $92.95, indicating a Margin of Safety of -30% [5] - Although Uber has transitioned to consistent profitability and strong free cash flow generation, the stock is currently trading above the conservative intrinsic value estimate, suggesting limited upside potential [5]