Alcoa Inc (AA), Chipotle Mexican Grill, Inc. (CMG), Consolidated Edison, Inc. (ED) Are Cheaper than Uber

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Uber’s valuation is projected at $17 billion and its CEO Travis Kalanick says that his company might fetch a record valuation, a lot more than Alcoa Inc (NYSE:AA), Chipotle Mexican Grill, Inc. (NYSE:CMG) and Consolidated Edison, Inc. (NYSE:ED).

Uber's valuation, $ 17 Billion

Sarah Frier of Bloomberg was surprised by this, stating:

Airbnb and Dropbox, both startups that just raised at $10 Billion valuations. There has been more venture capital financing in the first quarter of this year than there was since 2001. So we are close to bubble levels with that. “

She said that Uber wants to stake its claim of being a record breaking valuation company as its CEO put it across.

Companies like Alcoa Inc (NYSE:AA), Chipotle Mexican Grill, Inc. (NYSE:CMG) and Consolidated Edison, Inc. (NYSE:ED) have histories of free cash flow generation and have been rewarding their investors very well. When she was asked if we are in a notion private rounds are getting bigger than any round when the company goes public, she answered

“It does get into a dangerous territory right because you wonder can Uber be as big as those companies you just mentioned (companies like Alcoa). Can they be bigger? If they are getting this valuation in the private market, they are expecting that Uber can make many multiples of that in the public market. “

Sarah Frier also mentioned that a lot of tech stocks got hit this year and hence this can be a frothy valuation and that the private markets lag the public sentiment.

She also said that there might be an IPO very soon and she also focused on how other companies like Vox are dealing with the IPO.

Google Inc (NASDAQ:GOOGL)’s Google Ventures is the largest investor in Uber Technologies and it is expected to gain a lot from this valuation and the funding round coming up.

Disclosure: none

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