Does Uber Technologies (UBER) Show That Analysts Don't Care About Value Anymore?

Uber Technologies may be overvalued with mixed growth prospects, but the 41 analysts following the company give it an average rating of buy. The analysts have set target prices ranging from $27.0 to $75.0 per share, for an average of $47.55. At today's price of $32.36, Uber Technologies is trading -31.95% away from its average target price, suggesting there is an analyst consensus of strong upside potential.

Uber Technologies, Inc., commonly known as Uber, is an American technology company. The large-cap Technology company is based in San Francisco, CA.

Uber Technologies does not have a meaningful trailing P/E ratio since its earnings per share are currently in the red. Based on its EPS guidance of 0.66, the company has a forward P/E ratio of 49.03. In comparison, the average P/E ratio for the Technology sector is 27.16. Furthermore, Uber Technologies is likely overvalued compared to its book value, since its P/B ratio of 8.77 is higher than the sector average of 6.23.

If analysts are giving the the company a decent rating despite its hefty price point, it could be related to its pattern of increasing cash flows and growing top line revenue. They might also believe that Uber Technologies's positive margin growth trend will continue.

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $13,000 $11,139 $17,455 $31,877
Revenue Growth n/a -14.32% 56.7% 82.62%
Gross Margins -8.86% -12.42% 1.3% 10.69%
Gross Margins Growth n/a -40.18% 110.47% 722.31%
Operating Margins -66.12% -43.66% -21.97% -5.75%
Operating Margins Growth n/a 33.97% 49.68% 73.83%
Earnings Per Share -$5.0 -$3.66 -$0.25 -$4.57
EPS Growth n/a 26.8% 93.17% -1728.0%
Diluted Shares (MM) 1,700 1,850 1,949 2,000
Free Cash Flow (MM) -$4,909 -$3,361 -$743 $390
FCF Growth n/a 31.53% 77.89% 152.49%
Capital Expenditures (MM) $588 $616 $298 $252
LT Debt to Equity 0.41 0.65 0.65 1.28
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.