Is UiPath’s Recent Earnings Beat Signaling a New Run in 2025?

If you are trying to decide what to do with UiPath stock right now, you are not alone. This robotic process automation leader has caught plenty of eyes lately, with the share price jumping 15.6% in just the last week, and a massive 26.4% gain over the past month. Even year-to-date, UiPath is up 12.3%. If you zoom out to the last three years, investors have still managed nearly 19% gains, even with some volatility along the way.

So, what is behind these moves? The market seems to be warming up to automation and artificial intelligence plays again, with UiPath benefiting from renewed optimism about how companies are going to automate workflows to drive down costs and boost productivity. There has also been chatter around sector-wide investment and technology adoption trends, which has helped shift risk perception in favor of these future-focused businesses.

Right now, UiPath earns a value score of 4 out of 6, meaning it appears undervalued on four separate valuation checks. That is a great place to start if you are hunting for stocks with upside potential. However, as any seasoned investor knows, not all valuation methods tell the full story. Let’s dive into how analysts arrive at those valuation scores. Later, I will introduce an even sharper tool for sizing up UiPath stock’s real worth.

Why UiPath is lagging behind its peers

Approach 1: UiPath Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) valuation is a popular method that estimates a company’s intrinsic value by projecting its future cash flows and discounting them back to today’s dollars. Essentially, this approach asks what all those future cash flows are really worth in the present, providing a way to evaluate whether the current share price undervalues or overvalues a business.

For UiPath, analysts estimate the current Free Cash Flow at $318.9 million, with projections of continued growth over the next decade. Notably, forecasted Free Cash Flow rises steadily each year and reaches about $700.8 million by 2035. The model relies on direct analyst estimates for the next five years and uses extrapolated growth beyond that to reflect a blend of analyst consensus and longer-term assumptions.

Based on these projections, the DCF model arrives at an intrinsic value of $17.79 per share. Comparing this calculation to the current share price shows there is an intrinsic discount of 18.4%. This indicates that the stock appears meaningfully undervalued at present levels.

Result: UNDERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for UiPath.

Our Discounted Cash Flow (DCF) analysis suggests UiPath is undervalued by 18.4%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

Approach 2: UiPath Price vs Sales

The Price-to-Sales (P/S) ratio is a widely used valuation metric for technology companies like UiPath, especially when profitability is still developing or operating margins are variable. The P/S ratio helps compare how much investors are willing to pay for each dollar of revenue. This makes it a relevant yardstick, as sales growth is often a major driver of value in this sector.

Growth expectations and perceived business risks influence what is considered a “normal” or “fair” P/S ratio. High-growth, lower-risk companies can justify a premium multiple, while slower-growing or riskier names tend to command lower ratios. For UiPath, the current P/S ratio is 5.15x, which sits just below the software industry average of 5.28x and well below the peer group’s average of 9.01x. This suggests the market is taking a relatively conservative view on UiPath’s prospects compared to its closest competitors.

Simply Wall St’s proprietary Fair Ratio for UiPath is 6.46x. This figure is carefully calculated based on the company’s growth outlook, profitability, risk profile, industry landscape, and market capitalization. This makes it much more tailored than blanket comparisons to industry averages or peer groups. By factoring in these company-specific elements, the Fair Ratio offers a more nuanced benchmark for what UiPath’s shares should actually be worth.

Comparing the current P/S multiple of 5.15x to the Fair Ratio of 6.46x suggests that UiPath may be undervalued at current levels, as the market assigns a lower value to the company’s sales than its fundamentals would indicate.

Result: UNDERVALUED

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your UiPath Narrative

Earlier, we mentioned there is an even better way to understand valuation. Let’s introduce you to Narratives. A Narrative is your personal story or perspective about a company, tying together what you believe about UiPath's future, such as growth, earnings, and risks, and connecting it directly to your financial forecast and fair value estimates.

Unlike traditional models, Narratives provide context behind the numbers by letting you outline why you think UiPath will succeed or struggle, making your investment decision both data-driven and meaningful. Narratives link the company’s unique story to a forecast and an actionable fair value, helping you decide when the stock’s price offers a buying or selling opportunity.

On Simply Wall St’s Community page, millions of investors use Narratives as an easy, accessible tool to map out their case for or against a stock. Narratives update dynamically whenever new information such as earnings reports or news emerges, ensuring your assumptions always stay relevant.

For UiPath, one investor’s Narrative might highlight market expansion and set a bullish fair value around $17, while another could focus on macro uncertainty, targeting $11.71 instead. By building your own Narrative, you gain clarity on what you believe and how that shapes your investment decisions.

Do you think there's more to the story for UiPath? Create your own Narrative to let the Community know!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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