UiPath (PATH): Reassessing Valuation After a 36% Three-Month Share Price Rally

UiPath (PATH) has quietly outperformed many software peers over the past 3 months, with the stock up about 36%, even after a choppy week that saw a pullback from recent highs.

See our latest analysis for UiPath.

That recent wobble comes after a strong run, with UiPath’s share price now at $16.09 and a solid 90 day share price return helping to offset a more modest 1 year total shareholder return. This suggests momentum is still broadly constructive as investors reassess its growth and automation tailwinds.

If UiPath’s move has you thinking about what else could be gaining steam, this might be a good moment to scan other high growth tech and AI stocks that are starting to attract attention.

With shares now trading just below analyst targets but still showing a near 10 percent implied intrinsic discount, the question looms: is UiPath quietly undervalued, or is the market already pricing in its next growth leg?

Most Popular Narrative: Fairly Valued

With UiPath closing at $16.09 against a narrative fair value near $15.93, the story frames the stock as roughly aligned with embedded expectations.

The fair value estimate has risen moderately from approximately 13.86 dollars to 15.93 dollars, reflecting a higher implied intrinsic value per share. The future P/E multiple has increased significantly from approximately 96.9x to 139.9x, implying a higher valuation multiple on expected forward earnings.

Read the complete narrative.

Curious why a richer future profit multiple still clears the narrative’s hurdle rate, even as growth and margin assumptions turn more cautious? The full breakdown reveals the tension.

Result: Fair Value of $15.93 (ABOUT RIGHT)

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

However, ongoing geopolitical uncertainty and FX headwinds could delay deals and pressure margins, quickly challenging the idea that UiPath’s current valuation is justified.

Find out about the key risks to this UiPath narrative.

Another Take On Valuation

While UiPath screens as roughly fairly priced on narrative fair value, its 37.5x earnings multiple versus a 32.7x industry average and a 14.5x fair ratio suggests the market is paying a steep premium. Is this confidence in AI automation, or a margin of error waiting to close?

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

Build Your Own UiPath Narrative

If this perspective does not quite align with your own, or you prefer to dive deeper into the numbers yourself, you can build a personalized view in just a few minutes, Do it your way.

A great starting point for your UiPath research is our analysis highlighting 2 key rewards and 2 important warning signs 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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