According to analysts, it might be possible that Uber’s net worth may be lower than the public debut. At present, Uber is trying to enlist itself as a company with a price tag of $100 billion, in the New Year Stock Exchange. Contrary to this, Professor Aswath Damodaran had evaluated Uber around $60 billion. Professor Damodaran is considered as an expert evaluator who uses two different frameworks to evaluate the exact price tag. One of the frameworks uses a top-down approach where Damodaran had evaluated Uber based on market share and investment. The second framework focuses on a total number of users a company has, in case of Uber, Damodaran had considered its riders.
While evaluating through the first framework Damodaran estimated the total worth of Uber around $61.7 billion. While through second framework Damodaran estimated the net worth of Uber to be around $58.6 billion. During a press interview, Damodaran stated that companies have to market their value to customers and prospective business partners.
Contrary to this, last year the Wall Street Journal stated the price of Uber around $120 billion. Damodaran had also evaluated Lyft, the immediate rival of Uber. Professor Damodaran said that unlike rumors, Lyft is valued around $15 billion which was $5 billion short as it had projected itself in the market.
Through a web post, Damodaran stated that with an increase in the pricing of Lyft, Uber will also register a spike in its overall market value. According to the analyst, it isn’t always that IPO valuation is higher than the actual valuation of the company. When professor Damodaran had evaluated Facebook, the valuation of the company came higher than which was provided by the IPO sector.
According to sources, Uber is a behemoth which is planning to become a part of the public sector. At present Uber has provided the structure of several businesses along with ride-hailing. At present, the company is operating in 63 nations. Contrary to Uber, Lyft offers ride sharing facility and it is operating in the U.S as well as in Canada.