UBER Best Stock Buy: Undervalued with Growth Catalysts

about 1 month ago

Parkev Tatevosian, CFA

"So now let's take a look at valuation. So I calculated an intrinsic value per share for Uber at $132. The current market price after the 6% decline today is $94. So it looks considerably undervalued based on my DCF calculation. When I go to fiscal.ai, which is my preferred data provider, there's a link in the description if you're interested in these kinds of charts where you can get the forward price to earnings ratios. Uber's trading at a forward PE of 30, which I think is cheap for a company that's growing revenue at 20% with an asset light business model. So, I think the stock is cheap. The risks of driverless car technology disrupting its business remain. All things being considered, do I still think Uber is the best stock to buy right now? The answer is yes. I still like Uber stock. I still think it's one of the best and in fact the best stock you can buy right now."

The speaker explains that Uber is significantly undervalued based on his DCF calculation, highlighting an intrinsic value of $132 versus a current price of $94 and a forward PE of 30. He emphasizes strong revenue growth and cash flow improvements, positioning Uber as the best stock to buy despite risks from potential driverless technology disruptions. His analysis underscores both valuation catalysts and growth potential.

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