Uber's real value could be much lower than the price it goes public for, according to one expert.
Uber's real value could be much lower than the price where its public debut is set, according to one expert.
The first is known as a"top-down" valuation, a conventional way to value companies based on the total addressable market, market share, margins and reinvestment to come up with a value. The other uses a framework based on the amount of users on a platform, or in this case, riders. "The market is a pricing game and not a value game," Damodaran told CNBC in a phone interview."When you have young companies like these it's all mood and momentum driving prices."
"As Lyft's price moves, so will Uber's, and I am sure that there are many at Uber who are hoping and praying that Lyft's stock does not have many more days like last Thursday, before the Uber IPO hits the market," Damodaran wrote in a blog post Monday.
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