Awesome job Wolf. Appreciate the work on this. One question: the company is buying back stock and have stated they expect durable share count reduction going forward. Does that change how you model out the value per share result? Am I not thinking of that in the right way or are you modeling it with extra conservatism? Thanks!
Thank you for reading and for the question, it’s a good one.
Buybacks are a capital allocation decision. With Uber’s free cash flow, the company can choose to buy back shares, pay dividends, reinvest through M&A, or simply hold the cash.
In my valuation, I’m estimating the cash flows the company has the potential to generate, it’s then up to management to decide how to allocate that cash.
Awesome job Wolf. Appreciate the work on this. One question: the company is buying back stock and have stated they expect durable share count reduction going forward. Does that change how you model out the value per share result? Am I not thinking of that in the right way or are you modeling it with extra conservatism? Thanks!
Hi Matthew,
Thank you for reading and for the question, it’s a good one.
Buybacks are a capital allocation decision. With Uber’s free cash flow, the company can choose to buy back shares, pay dividends, reinvest through M&A, or simply hold the cash.
In my valuation, I’m estimating the cash flows the company has the potential to generate, it’s then up to management to decide how to allocate that cash.
I hope that helps answer your question.
I was going to say something similar. With so much forecasted FCF, UBER could turn themselves in APPL :)
Just answered this one above.
Great analysis Wolf!
Thanks for the feedback CL 👍