Question

10) As a new and growing company, Uber has had net losses for many years. Say...

10) As a new and growing company, Uber has had net losses for many years. Say that Uber is projected to turn a profit in 2022. What valuation metric would you use to compare Uber against other players in the same industry? And why? (4 pts)

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Answer #1

one can use enterprise valuation method in order to find out the overall value associated with Uber because the Uber is not able to make profits so mostly all such valuation techniques which are majorly focused at cash flows would be implemented and one can also try to implement discounting cash flow analysis in order to find the value of the company.

When the company is not able to to make consistent Profit, then it is always better to value it through the discounted cash flow method because cash flows are an important component of the liquidity and survival of the company and it will provide us about an idea of the relative valuation of the particular industry as well so it will help in finding out the overall share price of the company.

if I have to compare Uber with other place then I will be using the enterprise valuations methods

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