UiPath Inc. (PATH)
Valuation Overview•Is UiPath Inc. Overvalued or Undervalued?
Trading at a discount compared to peers, but the underlying intrinsic cash flows struggle to support the current price.
High-quality fundamentals with a strong composite quality score of 75/100, backed by robust profitability and solvency.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street is highly bullish, projecting significant upside with steady expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
PATH demonstrates adequate business quality with stable profitability. This is backed by a fortress balance sheet, holding significant net cash ($800M) and minimal debt risk.
The company is driving exceptional top-line expansion (15.0% 3Y CAGR) paired with stable bottom-line earnings. Operating efficiency remains adequate with margins around 6.2%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $418.4M | +12.7% | +15.0% | +21.5% | — | |
| EBITDA | $37.9M | — | — | — | — | |
| Net Income | $22.5M | +483.1% | — | — | — | |
| EPS (Diluted) | $0.04 | +500.0% | — | — | — | |
| Free Cash Flow | $129.2M | +15.2% | — | +68.4% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 83.0% | 83.6% | 83.0% | 83.8% |
| Operating Margin | 6.2% | -6.7% | -21.8% | -40.2% |
| Net Margin | 19.6% | 1.8% | -16.9% | -36.3% |
| FCF Margin | 22.4% | 21.8% | 10.9% | -7.7% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.16 | $0.15 | -5.9% | ||
| Q1'26 | $0.25 | $0.30 | +20.0% | ||
| Q4'25 | $0.15 | $0.16 | +8.7% | ||
| Q3'25 | $0.08 | $0.15 | +87.5% | ||
| Q2'25 | $0.10 | $0.11 | +7.7% | ||
| Q1'25 | $0.19 | $0.26 | +36.8% | ||
| Q4'24 | $0.07 | $0.11 | +57.1% | ||
| Q3'24 | $0.03 | $0.04 | +22.1% |
Total return is -17.0% (1Y), lagging the benchmark by -42.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -35.3% | -44.6% | — |
| 1Y | -17.0% | -42.0% | — |
| 3YCAGR | -16.3% | -35.9% | — |
| 5YCAGR | -31.8% | -44.4% | — |
| 10YCAGR | -17.3% | -31.0% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about UiPath Inc. (PATH) valuation, health, and returns.
UiPath Inc. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. overvalued (implying -29.0% downside from DCF intrinsic value of $7.29)
UiPath Inc. has multiple valuation anchors: DCF Intrinsic Value: $7.29 | Peer Relative Fair Value: $12.57 | Wall Street Analyst Target: $14.17 (implying +38.0% upside). A convergence of these signals offers higher conviction.
UiPath Inc. displays good financial health with a composite quality score of 75/100, supported by a Altman Z-Score of 3.3 (safe zone), Piotroski F-Score of 8/9, Return on Invested Capital (ROIC) of 3.9%.
UiPath Inc. returns capital via buybacks instead of dividends, carrying a 6.0% buyback yield and reducing outstanding shares by -2.7% in the last 12 months.
UiPath Inc.'s current growth trajectory is Decelerating. The company achieved +12.7% 1Y revenue growth and +500.0% 1Y EPS growth, compared to its 3Y revenue CAGR of +15.0%.
Wall Street consensus is Hold based on 24 analysts, beating EPS expectations in 92% of recent quarters with a -1-quarter streak. The consensus price target represents a +38.0% change from current levels.
Investment risks for UiPath Inc. include: -51.4% 1-year max drawdown. Volatility risk is characterized by a beta of 1.25x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.