VC9

Student ID: 11134888

Student: Ngoc Thao VuAdvisor: Shahzeb Mohmamed

Date: 07 Apr 2021

uber Series G (2018) funding and investors

Coventry University of London

1. UBER in 2018 and Investors
2. DCF method in valuating UBER
3. EBITA based Method
4. Reference
5. Thanks

Content

• New Investors : Coatue Management, TPG, Altimeter Capital, Toyota Motor Corporation
• Bankers have indicated that the company could be valued at as much as $120 billion.
• The key value drivers for the company include its total monthly active riders, the number of rides per rider annually, revenue per ride, net revenues and Price/Sales multiple (based on 2019 revenue)
• VALUATION 76 billion

1. UBER in 2018

2.1. UBER 2018-status

2. DCF method in valuating UBER

There are 6 elements to set story for UBER valuation:

• Potential Market
• Market Growth
• Market Share
• Revenue Slice & Operating Costs
• Reinvestment Needs
• Risk (Cost of capital & Survival risk)

2.2. Setting story for UBER

2. DCF method in valuating UBER

• Statutory Tax rate: 40% (US)

• Risk free rate: 2.1%
• The probability of failingin the next 10 years: 5%

Source: Damodaran (2014)

Other inputs:

2. DCF method in valuating UBER

2.3. FCFF of UBER under DCF Method

Source: Damodaran (2014)

2. DCF method in valuating UBER

Source: Damodaran (2014)

2.3. FCFF of UBER under DCF Method

2. DCF method in valuating UBER

Source: Damodaran (2014)

2.3. FCFF of UBER under DCF Method

2. DCF method in valuating UBER

Source: Damodaran (2014)

2.3. FCFF of UBER under DCF Method

2. DCF method in valuating UBER

From 2018 to 2021, its multiple EBITDA is negative figure (capitalIQ), which has no meaning.

- Compare start-up multiple EBITA to assess company versus the industry.Higher EBITDA multiples are expected in high-growth industries and lower multiples in industries with slow growth. - A positive EBITDA bodes well for company since it is a clear indication that the company is profitable at an operating level; it sells its products/services for more than they cost to produce/provide. In contrast, a negative EBITDA means that the company sells their products for less than what they cost to produce

3. EBITDA Based Method

Website:

• https://www.statista.com/statistics/550635/uber-global-net-revenue/
• https://venturebeat.com/2014/12/04/uber-raises-an-additional-1-2-billion-to-fund-asia-expansion/
• https://hbr.org/2014/12/making-sense-of-ubers-40-billion-valuation
• https://craft.co/uber/funding-rounds
• https://techcrunch.com/2014/06/06/uber-1-2b/?j=624378&e=anthonylarbalestier%40gmail.com&l=351_HTML&u=1959368&mid=6256233&jb=198
• https://app.dealroom.co/companies/uber
• https://www.businessinsider.com/ubers-revenue-2014-11?r=US&IR=T
• https://aswathdamodaran.blogspot.com/search?q=uber

4. Reference

Thanks for your attention

Any question?