Perform 10 Cap Valuation

Bill Ackman recently called Uber undervalued, and it's easy to see why.

Even at a relatively conservative 15% growth rate of FCF over the next 10 years (for the past 5 years they've grown FCF at 19.27% CAGR), that would put their valuation at $526.27B, almost 5x where the stock is trading at today.

But, if you factor in some of their growth strategy (and the fact that FCF has accelerated in recent years, considerably), a 30% FCF growth rate would put it at $1.6T in market cap.

Checkout my analysis on their possible growth strategy-- I'd love to get a discussion going.

Now, I'm not sure if it's realistic for them to compound that high for 10 years. 15% does seem reasonable though, especially given Dara's leadership.

You can see my DCF sheet here and play with the numbers yourself https://docs.google.com/spreadsheets/d/1n5pGG69PxDa8BqjDlRoUasQ30MsBoWX0uLu0kgmrM8c/edit?gid=0#gid=0