The Long Game Behind Waymo’s Potential $100 Billion Valuation

Can Waymo justify a $100 billion valuation? That’s a question investors will answer as Alphabet’s autonomous ride-hailing company discusses raising funding at a valuation that amounts to 280 times its annualized revenue—many times higher than other ride-hailing companies.

Waymo’s rapid expansion in recent months—despite some hiccups such as a service suspension during a San Francisco blackout—suggests it can grow into that valuation. Revenue should rise as it adds riders and new services in cities, either by taking market share from Uber and Lyft or by unlocking entirely new demand.