April 15, 2019

LYFT – Despite historical unprofitability, market expectations for LYFT are for a material expansion and positive inflection in Uniform ROA

Lyft, Inc. (LYFT:USA) currently trades well above corporate averages relative to UAFRS-based (Uniform) Assets, with a 21.2x Uniform P/B. At these levels, the market is pricing in expectations for Uniform ROA to materially expand, and inflect positively, improving from -117% in 2018 to 32% in 2023
In order to justify current valuations and meet market expectations, the firm must successfully expand its market share, fundamentally change auto buying trends, and become a leader in automated vehicle technology, while also overcoming margin and competitive pressures

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