Uber Technologies, Inc. (UBER) Intrinsic Value & DCF Valuation
Software - Application · NYSE
Current Price
$78.80
Intrinsic Value
$108.66
+27.5% margin of safety
What Is Uber Technologies, Inc.'s Intrinsic Value?
As of 2026-08-21, the base-case DCF model estimates the intrinsic value of Uber Technologies, Inc. (UBER) at $108.66 per share, compared with a market price of $78.8, a margin of safety of +27.5%. The base case assumes 11.1% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $85.75 to $134.99. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Uber Technologies, Inc. (UBER) Undervalued?
At $78.8, UBER trades about 27.5% below the base-case intrinsic value estimate. That is a real discount, but it stays short of the 30% margin of safety required before calling a stock undervalued.
COMPETITIVE MOAT
↑Powerful two-sided network effects
More riders attract more drivers, and more drivers create shorter wait times for riders. This creates a virtuous cycle that is difficult for competitors to replicate.
↑Extensive global brand recognition
Uber is a household name worldwide, fostering trust and familiarity among consumers. This brand equity translates into a significant advantage in attracting and retaining users.
↑Data and scale advantage
Vast amounts of operational data allow for continuous optimization of pricing, routing, and driver allocation. This scale provides efficiency gains and a superior user experience.
INVESTMENT RISKS
↓Driver classification and labor costs
Ongoing legal battles over whether drivers are employees or independent contractors pose significant financial and operational risks. A shift to employee status would drastically increase labor costs.
↓Intense competition and pricing wars
The ride-sharing market remains highly competitive, with rivals frequently engaging in aggressive pricing strategies. This can erode profitability and necessitate continuous promotional spending.
↓Dependence on third-party payment processors
Uber relies on external payment systems to facilitate transactions. Disruptions or increased fees from these processors could impact revenue and customer experience.
Base case
UBER base case valuation
Intrinsic Value
$108.66
Margin of safety
+27.5%
Expected annual return
+6.6%
Base case assumptions: 11.1% annual growth, 10.0% discount rate, 15.86x exit multiple, 5 year projection. Data as of 2026-08-21.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the UBER valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Uber Technologies, Inc. respond.
Open DCF Calculator for UBERCompany Overview
Uber 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.
Financial Metrics — UBER Stock Valuation Data
Revenue/Share (TTM)
$27.12
FCF/Share (TTM)
$4.97
ROIC (TTM)
13.0%
ROE (TTM)
35.7%
P/FCF
15.9x
EV/EBITDA
21.2x
FCF Yield
6.31%
Debt/Equity
0.54x
Based on trailing twelve-month data, UBER shows a free cash flow per share of $4.97 and a ROIC of 13.0%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 15.9x and FCF yield of 6.31% are important context metrics when evaluating UBER's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of UBER?
Uber Technologies, Inc. currently generates $4.97 in free cash flow per share. At the current price of $78.80, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is UBER undervalued?
UBER trades at a P/FCF ratio of 15.9x with a free cash flow yield of 6.31%. This P/FCF is in a moderate range. However, whether UBER is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value UBER stock using DCF?
To perform a DCF valuation on Uber Technologies, Inc.: (1) Start with the trailing free cash flow per share ($4.97) as the base, (2) project future FCF growth over 5-10 years based on Software - Application industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting UBER's risk profile — with a debt-to-equity of 0.54x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to UBER?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Uber Technologies, Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Software - Application trends, then discounting those amounts to today's dollars. UBER's ROIC of 13.0% shows moderate capital returns.
How does WACC affect UBER stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For UBER, with a debt-to-equity ratio of 0.54x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 21.2x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See UBER PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Technology valuationsDCF and P/E value UBER with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.