UiPath (PATH): Evaluating Valuation After New AI Partnerships With Nvidia, Microsoft and Others

UiPath (NYSE:PATH) is making waves this week after unveiling several new partnerships with top tech players like Nvidia, OpenAI, Google, Microsoft, and Snowflake. These collaborations are bringing cutting-edge AI models directly into the company’s automation platform, bringing fresh interest in the stock.

See our latest analysis for UiPath.

After a relatively quiet stretch, UiPath’s share price surged over 10% following headline-grabbing AI partnerships, lifting the stock to its highest point in months. With momentum building from these innovations and a 1-year total shareholder return of 3.3%, the company’s strong execution and strategic alliances are clearly attracting renewed investor interest for both the short and long term.

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With all these new partnerships and momentum, is UiPath now trading at a discount compared to its future prospects, or have investors already priced in most of the near-term growth?

Most Popular Narrative: 3% Undervalued

UiPath’s most widely followed narrative values the company at $13.30 per share, a slight premium to the last close of $12.90, sending a mixed signal about current upside. The new valuation reflects the latest figures and a shifting outlook in light of recent market and company-specific developments.

“The Consensus Analyst Price Target has fallen from $14.15 to $13.30. The Future P/E for UiPath has significantly risen from 36.44x to 94.00x. The Net Profit Margin for UiPath has significantly fallen from 13.09% to 4.65%.”

Read the complete narrative.

What’s really going on beneath these changes? The full story is a high-stakes recalibration, driven by sharp earnings shifts and new profit margin forecasts. Only by reading further will you discover which bold predictions and pivotal drivers are shaping this valuation. Find out what market-moving assumptions are powering the current fair value.

Result: Fair Value of $13.30 (UNDERVALUED)

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

However, ongoing geopolitical uncertainties and delays in deal closures could dampen UiPath’s short-term revenue growth and challenge analyst assumptions.

Find out about the key risks to this UiPath narrative.

Build Your Own UiPath Narrative

If you see things differently or want to dive deeper into the numbers, you can easily craft your own perspective in just a few minutes with Do it your way.

A great starting point for your UiPath research is our analysis highlighting 4 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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