Lyft trades at a deep discount, with a ~4x P/FCF multiple, despite double-digit growth and robust cash generation. Fears that autonomous vehicles will disrupt ridesharing are overstated; AVs are more likely to expand the total addressable market than displace platforms. Utilization challenges and customer acquisition costs favor aggregators like LYFT, as AV fleets struggle to match dynamic human-supply networks.
Lyft: Deeply Discounted Cash Machine Facing Overstated AV Risk
Source: Seeking Alpha