ValueWorks calls Lyft, Instacart and Rivian undervalued — MarketWatch
In the U.S. stock market, Charles Lemonides, founder of investment firm ValueWorks, considers the shares of Lyft, Maplebear, which operates under the Instacart brand, and Rivian to be more attractively valued compared with larger competitors. He urged investors not to assume that in certain industries one winner takes the entire market, MarketWatch reports.
Lyft versus Uber
According to FactSet, Lyft's enterprise value-to-forward sales ratio is 0.7, compared with 2.4 for Uber. The estimates are based on analysts' consensus forecasts for sales and EBIT. Lemonides noted that Lyft is growing faster: analysts expect its revenue to reach $7.4 billion in 2026, up 68% from $4.4 billion in 2023. Uber is expected to generate $57.8 billion in revenue in 2026, up 55% from $37.3 billion in 2023.
Lemonides also called Lyft a more focused bet on the U.S. ride-sharing market. The company operates almost exclusively in the United States, and nearly all of its revenue comes from this segment. According to him, Lyft has $900 million in total debt, while Uber has $23.5 billion.
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Instacart and Rivian
Maplebear has lower multiples than DoorDash: its enterprise value-to-forward sales ratio is 2.5 versus 4.1, while its enterprise value-to-forward EBIT ratio is 13.1 versus 45.9. Lemonides believes Instacart has a competitive advantage in grocery delivery thanks to its already established infrastructure and customer base.
Rivian does not expect to become profitable over the next two years, so a comparison with Tesla is possible only based on projected sales. Rivian's enterprise value-to-forward revenue ratio is 1.9, compared with 10.7 for Tesla. Rivian began delivering the R2 SUV to customers in the second quarter and expects to deliver 62,000–67,000 vehicles this year. In Lemonides' view, the company's profitability will depend on scaling up R2 production.
