Is Uber Technologies, Inc. overvalued or undervalued?

As of 31 January 2025, the valuation grade for Uber Technologies, Inc. has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued based on its strong financial metrics. Key ratios include a P/E ratio of 17, a PEG ratio of 0.03, and a return on equity (ROE) of 48.63%, which highlights its effective use of equity to generate profits.
In comparison to peers, Uber's P/E ratio of 16.59 is notably lower than Sysco Corp.'s P/E of 25.78, suggesting that Uber offers a more favorable valuation relative to its earnings. Additionally, Uber's EV/EBITDA ratio of 34.26 is competitive, especially when considering the industry average. The company's recent stock performance has outpaced the S&P 500, with a year-to-date return of 41.31% compared to the S&P 500's 2.44%, reinforcing the narrative of its undervaluation.