• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Uber (UBER) Stock May Be Undervalued After $15B Deal Review

    Simply Wall St·09/24/2026 02:27:38
    Listen to the news

    Uber Technologies has seen its share price pull back over the past year after a strong multi year run, which puts fresh attention on whether the current valuation lines up with what the business is earning today. With the stock now trading around US$69.42, the question for investors is how that price stacks up against the company’s earnings power rather than its headlines.

    • Over the past 5 years Uber Technologies has delivered a total return of 55.9%, which puts real weight on whether the current valuation can still be explained by its earnings profile.
    • Plans for a US$15b acquisition of Delivery Hero and multi billion commitments to autonomous vehicles may shape future earnings, capital needs and the timeframe over which profits flow through to shareholders.
    • Your read on Uber Technologies is one view; the desks covering it have another. See what analysts think Uber Technologies's shares could be worth.

    The issue now is whether Uber Technologies' current share price is adequately supported by the earnings that investors can see today.

    If you want to pressure test the earnings-based valuation question for Uber Technologies against a wider set of businesses, compare it with 30 high quality undervalued stocks.

    Does Uber Technologies Look Undervalued on Earnings?

    The P/E ratio is a useful yardstick for Uber Technologies because the business now reports positive earnings that can anchor the share price to actual profit. Uber Technologies currently trades on a P/E of 14.8x, compared with a Transportation industry average of 33.1x and a broader peer group around 47.3x, so the stock changes hands at a lower price tag per dollar of earnings than many similar businesses.

    The fair P/E that would typically line up with Uber Technologies' growth prospects, profitability, size and risk profile sits above the current multiple, which suggests that the shares screen as undervalued on this framework. Because the proposed US$15b Delivery Hero deal involves meaningful capital deployment and integration risk, that discount indicates the market is still pricing in a margin of caution even as the stock trades below what this earnings based model implies might be a more typical P/E over time. Explore the numbers behind Uber Technologies's P/E valuation.

    NYSE:UBER P/E Ratio as at Sep 2026
    NYSE:UBER P/E Ratio as at Sep 2026

    The Uber Technologies Narrative: What Would Justify Today's Price?

    Uber Technologies' valuation puzzle only really comes into focus once the underlying story is clear. This is where Simply Wall St Narratives come in as the link between today’s P/E and the assumptions that would need to hold for the stock to be worth materially more or less than its current price on the Community page. Each narrative anchors its number to a specific view on how Uber Technologies' growth, profitability and risk profile might evolve, giving you a reference point you can return to as fresh information emerges.

    One of the top community narratives on Uber Technologies: 40% undervalued

    "The market is no longer debating whether Uber can become profitable. It is debating who owns the economics of transportation when the driver disappears…"

    Discover why this Narrative puts Uber Technologies at 40% undervalued.

    One more angle on Uber Technologies that could change the picture

    Before you stop at the earnings multiple, it is worth asking who is actually steering Uber Technologies and what kind of rewards they are set up to pursue over the next few years. See who runs Uber Technologies and how they are paid.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.