Uber Technologies Inc, Uber is trading at a market capitalization of 126.97 billion USD, while Lyft Inc is trading at market capitalization of 5.19 billion USD.
Both Uber and Lyft are undervalued, according to Wolfteam Ltd.'s revenue and profitability projections.
Lyft, however is significantly undervalued on a relative value basis to Uber's high market capitalization of 126.97 billion USD.
It is true, Uber diversified into food delivery and Uber is showing strong revenue growth in 2022, but Lyft's current market capitalization at 5.19 billion USD does look too depressed.
Uber is trading at Price/Sales of 4, while Lyft is trading at Price/Sales of 1.25, which does make Lyft even more undervalued on a relative basis compared to Uber.
One reason for Lyft's low market capitalization is that Lyft's business is loss making with circa negative - 30 % net profit margins for 2021 and 2022 while Uber had -2.84 % net profit margin for 2021 and - 28.68 % and Uber has rolling net profit margin for the last four reported quarters of + 4 %. Uber is even trading at positive Price/Earnings ratio of 120.33, while the Price/Earnings ratio of Lyft in not possible to be calculated since Lyft is loss making.
That said, Uber's profitability is marginally higher and does not justify Uber's much larger market capitalization of 126.97 billion USD compared to Lyft's market capitalization of 5.19 and Uber's Price/Sales ratio of 4 compared to Lyft's Price/Sales ratio of 1.25
The only reason to justify Uber's overvaluation on a relative basis to Lyft is the fact that Uber has diversified in the very large market for food delivery. Further, Uber has higher revenue base, which helps it achieve some, if irregular profitability.
All in all, both Uber and Lyft seem undervalued on a standalone basis, Uber less so. Lyft does seem extremely undervalued and trading below its intrinsic worth. In the long-term, Uber's intrinsic worth is 157 billion USD, while Lyft's intrinsic worth is 22 billion USD, according to Wolfteam Ltd.'s revenue and profitability projections.
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