Is Uber Stock Expensive

 Is Uber Stock Expensive

Is Uber Stock Expensive Or Not?

Uber Technologies (UBER) was once famous for being a loss-making enterprise, but that has long changed. Today, the firm has not only disrupted the taxi industry but is also profitable.

Uber is now a global platform with stakes in logistics, mobility, advertising, food delivery, and so on. This has allowed Uber to diversify its income sources and become a more stable entity.

Uber Remains Profitable

Becoming profitable also led to a positive impact on Uber's stock price. In the last 2 years, the stock price of Uber has almost doubled.

But, this increase in the stock price has also raised a question: Is Uber stock expensive at its current price or is it still a good option?

The trailing P/S ratio of Uber is 4.6, which is relatively high compared to other stocks in the market. There's no doubt that the valuation of Uber looks high from all angles.

If we look back, Uber was focused on growth and growth alone for the last 4 years. This focus on growth also pushed the company to keep spending money, leading to losses.

Uber made its profit during the year 2023, which jumped in the year 2024. In fact, the operating income of Uber also doubled in 2024 and reached $2.8 billion. In addition, the free cash flow of Uber jumped to $6.9 billion.

During Q1 2025, the profitability of Uber continued as operating income was recorded at $1.2 billion. Just like that, the free cash flow also reached $2.3 billion with a 66% y/y increase.

Based on all of this, it becomes clear that the profitability of Uber isn't something temporary. In fact, the company has realigned its operations & is enjoying increasing profits.

That's why it is safe to say that Uber Technologies (UBER) is not an expensive stock at all! In fact, the current share price of Uber is very reasonable and even better than other firms in the same sector.

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