Stock Analysis on Net
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Uber Technologies Inc. (NYSE:UBER)

Present Value of Free Cash Flow to the Firm (FCFF)

Microsoft Excel

In discounted cash flow (DCF) valuation techniques the value of the stock is estimated based upon present value of some measure of cash flow. Free cash flow to the firm (FCFF) is generally described as cash flows after direct costs and before any payments to capital suppliers.

Intrinsic Stock Value (Valuation Summary)

Uber Technologies Inc., free cash flow to the firm (FCFF) forecast

US$ in millions, except per share data

Microsoft Excel
Year Value FCFFt or Terminal value (TVt) Calculation Present value at 18.94%
01 FCFF0 9,997
1 FCFF1 10,364 = 9,997 × (1 + 3.67%) 8,713
2 FCFF2 10,953 = 10,364 × (1 + 5.69%) 7,742
3 FCFF3 11,798 = 10,953 × (1 + 7.71%) 7,011
4 FCFF4 12,946 = 11,798 × (1 + 9.73%) 6,468
5 FCFF5 14,467 = 12,946 × (1 + 11.75%) 6,077
5 Terminal value (TV5) 224,775 = 14,467 × (1 + 11.75%) ÷ (18.94% – 11.75%) 94,411
Intrinsic value of Uber Technologies Inc. capital 130,421
Less: Long-term debt and finance leases liabilities (fair value) 11,322
Intrinsic value of Uber Technologies Inc. common stock 119,099
 
Intrinsic value of Uber Technologies Inc. common stock (per share) $58.51
Current share price $70.74

Based on: 10-K (reporting date: 2025-12-31).

1 See details »

Disclaimer!
Valuation is based on standard assumptions. There may exist specific factors relevant to stock value and omitted here. In such a case, the real stock value may differ significantly form the estimated. If you want to use the estimated intrinsic stock value in investment decision making process, do so at your own risk.

Weighted Average Cost of Capital (WACC)

Uber Technologies Inc., cost of capital

Microsoft Excel
Value1 Weight Required rate of return2 Calculation
Equity (fair value) 143,998 0.93 20.20%
Long-term debt and finance leases liabilities (fair value) 11,322 0.07 2.99% = 3.75% × (1 – 20.22%)

Based on: 10-K (reporting date: 2025-12-31).

1 US$ in millions

   Equity (fair value) = No. shares of common stock outstanding × Current share price
= 2,035,599,013 × $70.74
= $143,998,274,179.62

   Long-term debt and finance leases liabilities (fair value). See details »

2 Required rate of return on equity is estimated by using CAPM. See details »

   Required rate of return on debt. See details »

   Required rate of return on debt is after tax.

   Estimated (average) effective income tax rate
= (21.00% + 21.00% + 9.20% + 1.90% + 48.00%) ÷ 5
= 20.22%

WACC = 18.94%

FCFF Growth Rate (g)

FCFF growth rate (g) implied by PRAT model

Uber Technologies Inc., PRAT model

Microsoft Excel
Average Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Selected Financial Data (US$ in millions)
Interest expense 440 523 633 565 483
Net income (loss) attributable to Uber Technologies, Inc. 10,053 9,856 1,887 (9,141) (496)
 
Effective income tax rate (EITR)1 21.00% 21.00% 9.20% 1.90% 48.00%
 
Interest expense, after tax2 348 413 575 554 251
Interest expense (after tax) and dividends 348 413 575 554 251
 
EBIT(1 – EITR)3 10,401 10,269 2,462 (8,587) (245)
 
Current portion of long-term debt — 1,150 25 27 27
Finance leases liabilities, current 138 136 156 115 191
Long-term debt, net of current portion 10,521 8,347 9,459 9,265 9,276
Finance leases liabilities, non-current 84 174 322 284 43
Total Uber Technologies, Inc. stockholders’ equity 27,041 21,558 11,249 7,340 14,458
Total capital 37,784 31,365 21,211 17,031 23,995
Financial Ratios
Retention rate (RR)4 0.97 0.96 0.77 — —
Return on invested capital (ROIC)5 27.53% 32.74% 11.61% -50.42% -1.02%
Averages
RR 0.90
ROIC 4.09%
 
FCFF growth rate (g)6 3.67%

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

1 See details »

2025 Calculations

2 Interest expense, after tax = Interest expense × (1 – EITR)
= 440 × (1 – 21.00%)
= 348

3 EBIT(1 – EITR) = Net income (loss) attributable to Uber Technologies, Inc. + Interest expense, after tax
= 10,053 + 348
= 10,401

4 RR = [EBIT(1 – EITR) – Interest expense (after tax) and dividends] ÷ EBIT(1 – EITR)
= [10,401 – 348] ÷ 10,401
= 0.97

5 ROIC = 100 × EBIT(1 – EITR) ÷ Total capital
= 100 × 10,401 ÷ 37,784
= 27.53%

6 g = RR × ROIC
= 0.90 × 4.09%
= 3.67%

FCFF growth rate (g) implied by single-stage model

g = 100 × (Total capital, fair value0 × WACC – FCFF0) ÷ (Total capital, fair value0 + FCFF0)
= 100 × (155,320 × 18.94% – 9,997) ÷ (155,320 + 9,997)
= 11.75%

where:

Total capital, fair value0 = current fair value of Uber Technologies Inc. debt and equity (US$ in millions)
FCFF0 = the last year Uber Technologies Inc. free cash flow to the firm (US$ in millions)
WACC = weighted average cost of Uber Technologies Inc. capital

FCFF growth rate (g) forecast

Uber Technologies Inc., H-model

Microsoft Excel
Year Value gt
1 g1 3.67%
2 g2 5.69%
3 g3 7.71%
4 g4 9.73%
5 and thereafter g5 11.75%

where:
g1 is implied by PRAT model
g5 is implied by single-stage model
g2, g3 and g4 are calculated using linear interpolation between g1 and g5

Calculations

g2 = g1 + (g5 – g1) × (2 – 1) ÷ (5 – 1)
= 3.67% + (11.75% – 3.67%) × (2 – 1) ÷ (5 – 1)
= 5.69%

g3 = g1 + (g5 – g1) × (3 – 1) ÷ (5 – 1)
= 3.67% + (11.75% – 3.67%) × (3 – 1) ÷ (5 – 1)
= 7.71%

g4 = g1 + (g5 – g1) × (4 – 1) ÷ (5 – 1)
= 3.67% + (11.75% – 3.67%) × (4 – 1) ÷ (5 – 1)
= 9.73%