UiPath (PATH): Assessing Valuation After Major AI Partnerships and Industry Recognition

UiPath has been making waves with a series of new partnerships and product milestones, cementing its position as a leader in enterprise automation. The recent collaborations with OpenAI, NVIDIA, Google Gemini, and Snowflake highlight a strategic move toward deeper AI integration.

See our latest analysis for UiPath.

Riding a wave of high-profile AI partnerships and glowing industry recognition, UiPath’s share price has put on a show lately. The stock posted a standout 49.56% surge in the past month and a 31.86% year-to-date return. While the latest trading session saw a sharp one-day drop of 7.89%, momentum has been building overall. The company’s one-year total shareholder return of 34.25% and 53.33% across three years underscore how much excitement is priced into UiPath’s long-term automation ambitions.

If these AI collaborations caught your attention, you might want to see which other tech innovators are making moves—See the full list for free.

The question now is whether UiPath’s recent momentum means investors are getting in early on a long-term AI automation winner, or if the market has already priced in all the future growth ahead.

Most Popular Narrative: 26.9% Overvalued

The current narrative’s fair value estimate stands at $13.44, considerably below UiPath’s latest close of $17.05. As excitement builds around the company’s future in automation, it’s worth looking at what drives this valuation and the key assumptions in play.

New product launches such as Agent Builder and Agentic Orchestration, along with strategic partnerships like with Microsoft and Deloitte, are positioned to expand market opportunities, potentially increasing earnings through higher-value deals. UiPath’s commitment to cloud offerings, with over $975 million in cloud ARR, positions the company to capitalize on AI-driven products and services, which could contribute to revenue growth and improved gross margins.

Read the complete narrative.

Want to know what’s fueling this premium price tag? The most ambitious projections focus on an aggressive shift in profit margins and sustained revenue growth from newly launched products and partnerships. The narrative sets a high bar. Are you curious which future milestones and bold financial outcomes must actually happen for UiPath to hit that target? Click through and see what the consensus is truly betting on.

Result: Fair Value of $13.44 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing geopolitical challenges and industry competition could slow revenue momentum. This introduces uncertainty to the upbeat long-term story for UiPath.

Find out about the key risks to this UiPath narrative.

Another View: What Do The Multiples Say?

While the narrative suggests UiPath is 26.9% overvalued, a quick look at its usual price-to-sales ratio tells a slightly different story. UiPath trades at 6x sales, which is higher than the software industry average of 5x but still below peer averages at 10.2x. Interestingly, this is cheaper than the fair ratio of 7.1x that the market could eventually lean towards. Does this gap indicate hidden value or just more risk?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own UiPath Narrative

If you see things differently or want to explore your own perspectives, try digging into UiPath’s numbers and narrative for yourself in just a few minutes. Do it your way

A great starting point for your UiPath research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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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