1. Uber v. Didi Valuation
Investment recommendations
Contact: Nathan McCutcheon | Mobile: (425) 879-6215 | Email: nmccutcheon@sandiego.edu
Contact: Ike Ekeh | Mobile: (415) 290-2713 | Email: Iekeh@Sandiego.edu
Contat: Rajat Raizada | Mobile: (619) 319–8488 | Email: Rraizada@sandiego.edu

2. Team
•University of San Diego (MBA,
Candidate)
•Portfolio Manager (Intern) at The
Retirement Group, LLC
•Management Consultant at The Army
and Navy Academy
•Expert competencies in financial
valuation and Excel modeling
Rajat
Raizada
•University of San Diego (MBA / MS in
Finance)
•CFA Level 1, Candidate
•Director, Business Development and
Corporate Finance at NDC
•5 Years of Private Accounting
Experience
•Expertise in FSA / Valuation
Ike Ekeh
•University of San Diego (MBA / MS in
Finance)
•Business & Financial Analyst (United
Technologies Corporation)
•Associate Venture Capital Intern
(Analytics Ventures)
•4 Years Active Duty (Army)
Nathan
McCutcheon

3. Executive Summary
Current Market Valuations
Uber: $68B+ Didi: $34B+
Analysis
Discounted Cash Flow Comparable Company Analysis
Case Requirements
Valuations of Uber and Didi •Recommendations to Investor
Valuations derived from
Crunchbase funding in
latest round of equity
financing for each company.

4. General Assumptions
• Uber – 2,000,000 rides per day (used for 2016 sales)¹
• Didi – 10,000,000 rides per day (used for 2016 sales)¹
• Uber Net Debt - $2.75B²
• Didi Net Debt - $3B²
• $10 per ride (most sources cite $12 plus per ride)³
• Same comparable companies to benchmark Uber and Didi at the same position⁴
• 25% discount assumed for comparable analysis
• Assuming no cash on hand for both Uber and Didi

5. Uber Football Field
Uber Equity Value -
$30.25B
$15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $50.00
Discounted Cash Flow
Comparable Companies
Uber Valuation Ranges
$39.28$24.32
$25.84 $31.58

6. Didi Football Field
Didi Equity Value -
$159.89B
$100.00 $120.00 $140.00 $160.00 $180.00 $200.00 $220.00 $240.00
Discounted Cash Flow
Comparable Companies
Didi Valuation Range
$128.58 $203.41
$169.16$138.41

7. Comparable Company Assumptions
Shipping
JB Hunt
Knight Transportation
Landstar Systems Inc
Old Dominion Freight Line
Swift Transportation
Heartland Express
Marten Transport
Saia Inc
Universal Holding
Auto
General Motors
Tesla
Ford
Tech
Amazon
Line
Facebook
Alibaba
Grubhub
Twilio
Due to Uber’s acquisition of Otto and general capacity for growth in the
shipping industry, we applied several public Shipping Comparables
Due to the significant disruption within the auto industry, we decided to
value Uber and Didi based on these comparables. All have significant
investment or partnerships in autonomous vehicle technology.
Uber and Didi are, first and foremost,
tech companies. We chose recent
IPOs with significantly higher
multiples than the above
comparables.

8. Comparable Analysis (UBER and DIDI)
Company Ticker EV/Sales
Amazon AMZN 2.76
Line LN 5.38
Facebook FB 12.63
Alibaba BABA 12.04
Grubhub GRUB 6.11
Twilio TWLO 11.24
Tech Companies
Company Ticker EV / Sales
JB Hunt JBHT 1.73
Knight Transportation KNX 2.53
Landstar Systems Inc LSTR 1.06
Old Dominion Freight Line ODFL 2.42
Swift Transportation SWFT 1.08
Heartland Express HTLD 2.67
Marten Transport MRTN 1.15
Saia Inc SAIA 0.94
Universal Holding ULH 0.57
Shipping Companies
Company Ticker EV / Sales
General Motors GM 0.67
Tesla TSLA 4.66
Ford F 1.05
Car Companies
All Comparables
Average 1.57
Median 1.15
Best Comparables
Average 1.81
Median 1.73
All Comparables
Average 8.36
Median 8.675
All Comparables
Average 10.51
Median 11.64
All Comparables
Average 2.13
Median 1.05
Best Comparables
Average 2.13
Median 1.05
Industry EV/Sales Median EV/Sales Average Weightage Allocation
Shipping 1.73 1.81 0.2
Auto 1.05 2.13 0.2
Tech 11.64 10.51 0.6
Forward EV / Sales Multiple 4.81 4.81 7.54
Comparable Company Valuation Data
Weighted
Allocations
determined by
importance to
business model

9. Uber Comparable Analysis
Uber Equity Value: $24B - $39B
Industry EV/Sales Median EV/Sales Average Weightage Allocation
Shipping 1.73 1.81 0.2
Auto 1.05 2.13 0.2
Tech 11.64 10.51 0.6
Forward EV / Sales Multiple 4.81 4.81 7.54
2016 Sales (UBER) 7,300,000,000 7,300,000,000 7,300,000,000
Uber Enterprise Value (billions) $26.32 $26.35 $41.28
Uber Net Debt (billions) $2.00 $2.00 $2.00
Uber Equity Value $24.32 $24.35 $39.28
Comparable Company Valuation Data

10. Didi Comparable
Didi Equity Value: $128B - $203B
Industry EV/Sales Median EV/Sales Average Weightage Allocation
Shipping 1.73 1.81 0.2
Auto 1.05 2.13 0.2
Tech 11.64 10.51 0.6
Forward EV / Sales Multiple 4.81 4.81 7.54
2016 Sales (DIDI) 36,500,000,000 36,500,000,000 36,500,000,000
Didi Enterprise Value (billions) $131.58 $131.74 $206.41
Didi Net Debt (billions) $3.00 $3.00 $3.00
Didi Equity Value (billions) $128.58 $128.74 $203.41
Comparable Company Valuation Data

11. DCF Assumptions
Uber
• Operating margin for 2016 is 15% growing 5% per
year; constant at 30%
• Cost of Capital – 12% declining by .5% annually
• Reinvestment rate 25% constant
• American Corporate Tax Rate (30%)
• Revenue growth rate 6% - Average taxi cab growth
globally (2-6%)
• WACC – 9% declining by .5% through 2022
• Terminal growth rate 5%
Didi
• Operating margin for 2016 is 15% growing 5% per year;
constant at 30%
• Cost of Capital – 12% declining by .5% annually
• Reinvestment rate 25% constant
• Chinese Corporate Tax Rate (25%)
• Revenue growth rate 6% - Average taxi cab growth
globally (2-6%)
• WACC – 9% declining by .5%
• Terminal growth rate 5%

12. Uber DCF
Uber Equity Value: $25B - $31B
2016 2017 2018 2019 2020 2021 2022
Sales Revenue 7,300,000,000$ 7,738,000,000$ 8,202,280,000$ 8,694,416,800$ 9,216,081,808$ 9,769,046,716$ 10,355,189,519$
Operating Margin 15% 20.00% 25.00% 30.00% 30.00% 30.00% 30.00%
Operating Income 1,095,000,000$ 1,547,600,000$ 2,050,570,000$ 2,608,325,040$ 2,764,824,542$ 2,930,714,015$ 3,106,556,856$
Effective Tax Rate 30% 30% 30% 30% 30% 30% 30%
Less: Taxes 328,500,000$ 464,280,000$ 615,171,000$ 782,497,512$ 829,447,363$ 879,214,204$ 931,967,057$
After Tax Operating Income 766,500,000$ 1,083,320,000$ 1,435,399,000$ 1,825,827,528$ 1,935,377,180$ 2,051,499,810$ 2,174,589,799$
Reinvestment % 25% 25% 25% 25% 25% 25% 25%
Less: Reinvestment 191,625,000$ 270,830,000$ 358,849,750$ 456,456,882$ 483,844,295$ 512,874,953$ 543,647,450$
FCF from firm 574,875,000$ 812,490,000$ 1,076,549,250$ 1,369,370,646$ 1,451,532,885$ 1,538,624,858$ 1,630,942,349$
Terminal Value 23,299,176,419$ 14,406,657,419$
Present value of FCFF 728,690,583$ 869,833,354$ 1,001,292,331$ 964,881,701$ 934,040,733$ 908,333,190$
Cost of Captial 12% 11.50% 11.00% 10.50% 10.00% 9.50% 9.00%
Cumulated cost of capital 1.1 1.2 1.4 1.5 1.6 1.8
PV of cash flow 6 years 5,407,071,891$ Terminal Growth Rate 5%
PV of Terminal Value 23,299,176,419$ Revenue Growth Rate 6%
PV of Equity 28,706,248,310$ Discount Rate 12%
Upper Limit ( +10%) 31,576,873,141$
Lower Limit (-10%) 25,835,623,479$

13. Didi DCF
Didi Equity Value: $138B - $169B
2016 2017 2018 2019 2020 2021 2022
Sales Revenue 36,500,000,000$ 38,690,000,000$ 41,011,400,000$ 43,472,084,000$ 46,080,409,040$ 48,845,233,582$ 51,775,947,597$
Operating Margin 15% 20.00% 25.00% 30.00% 30.00% 30.00% 30.00%
Operating Income 5,475,000,000$ 7,738,000,000$ 10,252,850,000$ 13,041,625,200$ 13,824,122,712$ 14,653,570,075$ 15,532,784,279$
Effective Tax Rate 25% 25% 25% 25% 25% 25% 25%
Less: Taxes 1,368,750,000$ 1,934,500,000$ 2,563,212,500$ 3,260,406,300$ 3,456,030,678$ 3,663,392,519$ 3,883,196,070$
After Tax Operating Income 4,106,250,000$ 5,803,500,000$ 7,689,637,500$ 9,781,218,900$ 10,368,092,034$ 10,990,177,556$ 11,649,588,209$
Reinvestment % 25% 25% 25% 25% 25% 25% 25%
Less: Reinvestment 1,026,562,500$ 1,450,875,000$ 1,922,409,375$ 2,445,304,725$ 2,592,023,009$ 2,747,544,389$ 2,912,397,052$
FCF from firm 3,079,687,500$ 4,352,625,000$ 5,767,228,125$ 7,335,914,175$ 7,776,069,026$ 8,242,633,167$ 8,737,191,157$
Terminal Value 124,817,016,529$
Present value of FCFF 3,903,699,552$ 4,659,821,537$ 5,364,066,059$ 5,169,009,111$ 5,003,789,642$ 4,866,070,661$
Cost of Captial 12% 11.50% 11.00% 10.50% 10.00% 9.50% 9.00%
Cumulated cost of capital 1.1 1.2 1.4 1.5 1.6 1.8
PV of cash flow 6 years 28,966,456,561$ Terminal Growth Rate 5%
PV of Terminal Value 124,817,016,529$ Revenue Growth Rate 6%
PV of Equity 153,783,473,090$ Discount Rate 12%
Upper Limit (+10%) 169,161,820,399$
Lower Limit (-10%) 138,405,125,781$

14. Conclusions
Uber
• Recent funding valued Uber at $60B+
• Analysis shows valuation of ~$30B
• 20% Growth requirement will not be
recognized due to a market
overvaluation (2019 PV is $36B)
• Cash out at $100 per share ASAP
Didi
• Recent funding valued Didi at $30B+
• Analysis shows valuation of ~$160B
(demonstrates >20% growth potential)
• 20% Growth requirement will be
realized due to a market
undervaluation (2019 PV $236B)
• Use gains from Uber stock sale to
invest in Didi @ $50 per share**

15. Additional Considered Events
• Regulatory issue flare ups globally. Dispute between governmental bodies, taxi unions,
etc.
• Lawsuits between 1099 Contract Employees
• Dissolved partnerships with car makers and autonomous vehicle regulation hurdles
• New competitive threats from auto industry (example: GM or Ford into Ride Sharing)
• Due to the significant undervaluation of Didi, events should not impact
the 20% growth requirement