Assessing Uber Technologies (UBER) Valuation After Recent Share Price Swings And Long Term Gains

Uber Technologies (UBER) is back in focus after recent share price swings, prompting investors to reassess how its current valuation lines up with its financial profile across Mobility, Delivery, and Freight operations. See our latest analysis for Uber Technologies. Recent swings sit against a mixed backdrop, with a 3.1% year to date share price return and a 90 day share price decline of 9.2%, while the 3 year total shareholder return of 190.2% points to strong longer term momentum. If Uber’s moves have you thinking more broadly about transport and logistics, it could be a good moment to scan other auto manufacturers that might complement or contrast with a platform business like this. With Uber posting US$49.6b in revenue and US$16.6b in net income, yet trading at a discount to analyst targets and some intrinsic models, you have to ask: is this a genuine opening, or is the market already baking in future growth? Most Popular Narrative: 22.8% Undervalued With Uber Technologies' most followed narrative pointing to a fair value above the US$85.44 last close, the gap between price and expectations is hard to ignore. Significant investments and accelerating partnerships in autonomous vehicles (AVs) and electrification (with Waymo, Lucid, Nuro, etc.) position Uber to benefit from secular industry shifts; successful AV commercialization could transform long-term cost structures and profitability, boosting future earnings potential. Progressive scaling of high-margin ancillary revenue streams such as advertising, data/tech platform externalization, and Uber One loyalty, are supporting margin expansion and enhancing long-term earning power. Read the complete narrative. Curious how a business forecasting softer earnings growth can still command a premium future P/E and double digit revenue growth assumptions? The narrative connects autonomy, AI driven monetization, and margin reset into a single valuation story. The key point lies in how far profitability is expected to compress, and what multiple the market is assumed to pay for those earnings. Result: Fair Value of $110.72 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this hinges on AV and AI plans paying off. Any stumble on regulation or margin pressure could quickly challenge that 22.8% undervalued case. Find out about the key risks to this Uber Technologies narrative. Build Your Own Uber Technologies Narrative If you are not fully convinced by this view, or you would rather test the assumptions yourself, you can build a fresh narrative in just a few minutes with Do it your way. A great starting point for your Uber Technologies research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision. Looking for more investment ideas? If Uber has sharpened your thinking, do not stop here. Use the Simply Wall St Screener to uncover fresh stock ideas that fit what you are looking for. Spot potential high growth turnarounds by scanning these 3539 penny stocks with strong financials that pair smaller market caps with meaningful financial strength. Target the intersection of software, automation, and data by checking out these 28 AI penny stocks that are tied to artificial intelligence themes. Hunt for possible mispriced opportunities using these 882 undervalued stocks based on cash flows that screen for companies trading below cash flow based estimates. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.