How Do You Value A Company Like Uber?
— October 11, 2015
By Aswath Damodaran
I posted my first valuation of Uber in June 2014, viewing it as an urban car service, with local (but not global) networking benefits. Assuming that it would increase the size of the urban car service market by about 40%, while preserving its low capital-investment business model, I valued Uber at just under $6 billion.
While some in the VC community were quick to dismiss the valuation, I will remain grateful to Bill Gurley for a post where he took me to task for having too narrow a vision of Uber’s business model.
Read the full article as published on TechCrunch.
Aswath Damodaran is the Kerschner Family Chair in Finance Education.