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Wondering if UiPath is still a smart way to play the AI and automation theme, or if the easy money has already been made? Here is a look at the numbers so you can decide if the current price really matches the story.
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UiPath’s share price has been choppy lately, down 8.5% over the last week but still up 18.2% over the past month and 23.3% year to date, with a 20.3% gain over the last year and 31.6% over 3 years highlighting its long term appeal.
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That volatility has been shaped by a steady stream of AI and automation headlines, as investors reassess which platforms will become core infrastructure for enterprises. UiPath has been in the spotlight as companies look for tools to cut costs, standardize workflows and automate repetitive tasks at scale.
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On our basic valuation checks, UiPath scores a modest 2/6. This suggests pockets of value but also areas where expectations may be running hot. Next, we will dig into DCFs, multiples and growth assumptions before circling back to a more holistic way to think about what this stock is really worth.
UiPath scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
A Discounted Cash Flow model estimates what a business is worth by projecting its future cash flows and then discounting them back to today in $ terms. For UiPath, the model starts with last twelve month free cash flow of about $319.9 million and uses analyst forecasts for the next few years, then extends those trends further out using Simply Wall St assumptions.
On this basis, UiPath’s free cash flow is projected to rise to roughly $684.9 million by 2035, reflecting healthy but gradually moderating growth as the business matures. All of those future cash flows are discounted back using a 2 stage Free Cash Flow to Equity approach to arrive at an estimated intrinsic value of $17.75 per share.
Compared to the current share price, this implies the stock is about 10.2% undervalued, suggesting some upside remains if the cash flow trajectory plays out as expected and the market continues to reward UiPath’s growth profile.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests UiPath is undervalued by 10.2%. Track this in your watchlist or portfolio, or discover 918 more undervalued stocks based on cash flows.
PATH Discounted Cash Flow as at Dec 2025
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for UiPath.
For profitable companies like UiPath, the price to earnings ratio is a useful way to gauge how much investors are willing to pay today for each dollar of current profits. A higher PE can be justified when markets expect faster, more reliable growth. In contrast, companies with slower growth or higher risk typically deserve a lower, more conservative multiple.
Story Continues
UiPath currently trades on a PE of about 37.1x, which is above the broader Software industry average of roughly 31.2x but below the 60.3x average of its higher growth peers. To move beyond simple comparisons, Simply Wall St also calculates a Fair Ratio, which is the PE multiple the company would reasonably deserve after accounting for its earnings growth outlook, profitability, industry, market cap and key risks. This tailored Fair Ratio for UiPath is 14.4x, implying that, when all those fundamentals are weighed together, the market is paying a much richer price than the model suggests is warranted.
Result: OVERVALUED
NYSE:PATH PE Ratio as at Dec 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1456 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way to connect your view of UiPath’s future to a concrete forecast and fair value estimate. A Narrative is your story behind the numbers, where you spell out how you think UiPath’s revenue, earnings and margins will evolve, then link that story directly to a financial model and an implied fair value per share. On Simply Wall St, Narratives are an easy, accessible tool available on the Community page that millions of investors use to frame their buy or sell decisions by comparing each Narrative’s Fair Value to today’s Price, and seeing how that gap changes as fresh news or earnings automatically update the underlying assumptions. For UiPath, for example, one investor might build a bullish Narrative around accelerating AI partnerships and assign a fair value closer to the high analyst target of about $17 per share. In contrast, a more cautious investor, worried about competition and macro risks, could justify a Narrative fair value nearer the low end, around $11.71 per share.
Do you think there’s more to the story for UiPath? Head over to our Community to see what others are saying!
NYSE:PATH 1-Year Stock Price Chart
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.
Companies discussed in this article include PATH.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
