After getting a first look at Uber's financials on Thursday, analysts are divided when it comes to Uber's expected IPO valuation of as much as $100 billion. But the one thing they can agree on is that no one really has a surefire way to assess it.
Asked whether the $90 billion to $100 billion valuation at which Uber is expected to price its initial public offering, Wedbush Securities analyst Dan Ives said, "I think it's all in the eye of the beholder and I think its what investors are willing to pay."
Without previous earnings reports to serve as a benchmark or profit to assess, Wireless Fund Lead Portfolio Manager Paul Meeks said the best way to understand the valuation is through its sales numbers. Pricing the stock at six-times sales, which he said would be "a pretty healthy valuation even for an established tech company," Uber's value should really be about $73 billion. Similarly, he estimated Lyft should be priced at $50 per share with a valuation of $14 billion.
"I don't mind when a company, when they go public, if they have losses," Meeks said. But the fact that Uber's losses continues to report substantial losses is what gives him pause. Uber reported an adjusted EBITDA loss of $1.85 billion in 2018 and showed slowing revenue growth, which has raised some concerns for investors and analysts as they watch Lyft's stock sink from its IPO price of $72 to $59.90 as of Friday's close.