Software - Application · NYSE
Current Price
$68.85
PE Ratio (TTM)
16.5x
Intrinsic Value
$76.95
+10.5% margin of safety
As of 2026-06-12, applying a 17.0x earnings multiple to Uber Technologies, Inc.'s (UBER) earnings per share of $4.16 yields a fair value estimate of $76.95 per share, versus a market price of $68.85.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $61.27 to $95.04. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How our PE model works · Recalculate in PE mode · UBER intrinsic value (DCF view)
At $68.85, UBER trades about 10.5% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough for us to call it cheap outright.
COMPETITIVE MOAT
↑Network Effects
Uber benefits from strong two-sided network effects. More riders attract more drivers, and more drivers lead to shorter wait times and better service for riders, creating a virtuous cycle.
↑Brand Recognition
Uber is a globally recognized brand synonymous with ride-sharing. This strong brand equity reduces customer acquisition costs and fosters trust among users.
↑Data Advantage
Uber's extensive real-world driving data, collected by its growing fleet of data-collection vehicles, provides a significant advantage for developing and refining its autonomous driving technology.
INVESTMENT RISKS
↓Autonomous Vehicle Competition
The increasing focus on robotaxis, despite current stock price declines, signals intense competition in autonomous driving. This could erode Uber's market share and profitability if competitors achieve faster breakthroughs.
↓Driver Recruitment Challenges
Uber's CEO notes reduced driver recruitment in cities with self-driving taxis. This suggests potential future labor shortages and increased costs as autonomous technology advances.
↓AI Integration and Cost
While AI is a focus, its integration, including employee usage caps, suggests potential challenges and costs. Over-reliance or inefficient AI implementation could hinder operational efficiency.
Base case
Intrinsic Value
$76.95
Margin of safety
+10.5%
Expected annual return
+2.2%
Base case assumptions: 5.9% annual earnings growth, 17x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Uber Technologies, Inc. respond.
Open PE Calculator for UBERUber Technologies, Inc. is a leading technology corporation that conceptualizes and deploys its proprietary software applications across a broad global footprint, spanning North and South America, Europe, the Middle East, Africa, and the Asia-Pacific region. The company primarily serves as a digital nexus, linking consumers with independent transport providers for ride-hailing services. Furthermore, it connects individuals and other patrons with a variety of establishments—such as restaurants, grocery stores, and other retailers—to a network of delivery service providers for the preparation and transport of meals, groceries, and other goods. The organization structures its operations into three distinct divisions: Mobility, Delivery, and Freight. The Mobility division facilitates access for consumers to a wide array of transportation options offered by drivers, including traditional cars, auto rickshaws, motorbikes, minibuses, or taxis. This segment also incorporates financial collaborations, public transit integrations, and various vehicle-centric solutions. The Delivery division empowers users to easily locate and place orders from local eateries for either collection or delivery. Additionally, it encompasses the delivery of groceries, alcoholic beverages, convenience items, and a selection of other merchandise. The Freight division functions by pairing freight carriers with shippers through its platform, providing carriers with clear, pre-disclosed pricing and streamlined shipment booking capabilities, alongside broader transportation management and logistics services. Originally incorporated as Ubercab, Inc., the company officially adopted the name Uber Technologies, Inc. in February 2011. It was established in 2009 and maintains its principal offices in San Francisco, California.
PE Ratio (TTM)
16.5x
PEG Ratio
n/m
Earnings Yield
6.04%
ROE (TTM)
33.3%
Revenue/Share (TTM)
$26.16
Debt/Equity
0.50x
The trailing twelve-month PE ratio of UBER reflects how much investors pay per dollar of Uber Technologies, Inc.'s earnings. This metric is most useful when compared to Software - Application peers and the company's own historical range.
UBER's PE of 16.5x combined with a PEG ratio of -0.55 provides a growth-adjusted perspective. UBER has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Software - Application, a DCF analysis may be more appropriate.
To value Uber Technologies, Inc. using PE: (1) Compare the current PE (16.5x) against the Software - Application median to assess relative pricing, (2) check the PEG ratio (-0.55) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
UBER's PEG ratio is -0.55, calculated by dividing the PE ratio (16.5x) by the expected earnings growth rate. Because UBER has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
PE ratio gives a quick relative read — how UBER is priced versus Software - Application peers. DCF provides an absolute value based on projected free cash flows. For UBER, with a strong ROE of 33.3%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
P/E and DCF value UBER with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.