UiPath (PATH) Valuation Check After Geopolitical Easing Lifts Automation And AI Stocks

Reports of easing geopolitical tensions in Greenland helped lift risk appetite this week, and UiPath (PATH) rode that wave as technology and automation stocks drew renewed interest from investors.

See our latest analysis for UiPath.

The latest 6.69% 1-day share price return to US$15.15 comes after a weaker patch, with 30-day and 90-day share price returns of 5.08% and 8.07% declines. The 1-year total shareholder return of 9.86% and 3-year total shareholder return of 4.05% point to a mixed track record where short-term momentum has been soft, but longer-term holders have still seen gains.

If UiPath’s move has you thinking more broadly about automation and AI, this could be a useful moment to scan other high growth tech and AI stocks that might fit your watchlist next.

With UiPath trading at US$15.15 against an average analyst target around US$16.40 and an estimated intrinsic value gap of roughly 15%, the key question is whether this signals genuine undervaluation or if the market is already factoring in future growth.

Most Popular Narrative: 29.7% Undervalued

UiPath’s latest fair value narrative pegs the stock at $21.54 versus the last close at $15.15, which frames a sizable value gap for investors to consider.

UiPath is built fully around AI, and it sits right between the first and second stages of the AI boom. The first stage focused on building the hardware that makes AI possible. Companies like Nvidia and Micron supplied the chips, memory and data centres that power modern models. That phase created huge profits for those who spotted it early. Now we are entering the second stage where AI becomes part of everyday work. This is where UiPath fits in.

Read the complete narrative.

Curious what kind of revenue growth and profit margin profile sits behind that $21.54 fair value, according to QuanD? The narrative leans heavily on automation demand, recurring software economics and a premium future earnings multiple. The interesting part is how those inputs combine to justify almost a one third gap to today’s price.

Result: Fair Value of $21.54 (UNDERVALUED)

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

However, the thesis could still be challenged if larger platforms pull automation spend toward their bundled tools, or if UiPath’s newer AI products fail to gain traction.

Find out about the key risks to this UiPath narrative.

Build Your Own UiPath Narrative

If you look at the numbers and reach a different conclusion, or simply prefer to test your own assumptions, you can spin up a fresh view of UiPath’s story in just a few minutes, starting with 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.

Looking for more investment ideas?

If UiPath has sharpened your interest in automation and AI, do not stop here, some high quality ideas could be just a few clicks away.

• Spot potential early movers by scanning these 3525 penny stocks with strong financials that combine smaller market caps with stronger financial footing than many of their peers.
• Target long term growth themes by checking out these 24 AI penny stocks that are closely tied to AI adoption across different parts of the economy.
• Hunt for value focused opportunities by reviewing these 878 undervalued stocks based on cash flows where current prices sit below estimates based on underlying cash flows.

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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