If you have been wondering whether UiPath is a hidden bargain or a value trap at around $14.86 a share, you are not alone. This article is going to walk through exactly what the numbers are really saying.
Despite being down about 6.4% over the last month and roughly 3.1% over the past year, the stock is still up 9.3% over the last week and 14.9% year to date, which signals that sentiment around its long term potential is far from settled.
Recent headlines have focused on UiPath expanding its AI powered automation offerings and strengthening key partnerships, underlining its push to stay at the center of the automation trend. At the same time, market commentary has highlighted both rising competition and shifting expectations for high growth software names, helping explain the stock’s choppy price action.
On our framework, UiPath scores a 3/6 valuation check. This suggests it looks undervalued on some metrics but not convincingly cheap across the board. Next we will unpack the main valuation approaches investors are using and then finish with a more holistic way to make sense of what UiPath might really be worth.
Find out why UiPath’s -3.1% return over the last year is lagging behind its peers.
A Discounted Cash Flow model projects a company’s future cash flows and then discounts them back to today’s dollars to estimate what the business is worth right now.
For UiPath, the latest twelve month Free Cash Flow is about $318.9 million. Analysts and internal estimates see this rising steadily, with projected Free Cash Flow reaching roughly $695.4 million by 2035, based on a 2 Stage Free Cash Flow to Equity framework. Simply Wall St uses explicit analyst forecasts for the next few years and then extrapolates further out to build a 10 year cash flow curve.
When these future cash flows are discounted back to today, the model arrives at an intrinsic value of about $18.10 per share. Compared with the current share price around $14.86, the DCF suggests UiPath is trading at roughly a 17.9% discount to its estimated fair value. On this basis, the shares appear attractively priced according to the model.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests UiPath is undervalued by 17.9%. Track this in your watchlist or portfolio, or discover 908 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 a growing software business like UiPath that is still prioritizing scale over bottom line profits, the Price to Sales ratio is often a more reliable yardstick than earnings based metrics. Revenue tends to be more stable and less affected by short term swings in investment spending, making it a cleaner way to compare valuation.
What investors are really paying for in a sales multiple is future growth and the risk that growth disappoints. Faster, more predictable growers can usually justify a higher multiple, while slower or riskier names tend to trade closer to, or below, the industry norm.
UiPath currently trades on about 5.27x sales, slightly above the Software industry average of roughly 4.91x but well below the peer group average of around 9.46x. Simply Wall St’s Fair Ratio for UiPath, at about 6.46x, is a proprietary estimate of what the sales multiple should be given its growth profile, margins, industry, market cap and risk. Because it is tailored to UiPath’s specific fundamentals rather than broad group averages, it offers a more nuanced benchmark than simple peer or sector comparisons. On this basis, the current 5.27x sales looks below the Fair Ratio, which may indicate undervaluation.
Result: UNDERVALUED
NYSE:PATH PS Ratio as at Dec 2025
PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1442 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 attach your own story about UiPath to the numbers by linking what you believe about its products, partnerships, growth and risks to a concrete forecast for future revenue, earnings, margins and ultimately a Fair Value estimate. You can then compare this directly to today’s share price to decide whether it looks like a buy, a hold or a sell. On Simply Wall St’s Community page, millions of investors use Narratives as an easy, accessible tool that turns their view of a company into a living valuation that automatically refreshes when new information such as earnings, guidance or major news is released. This helps their Fair Value stay in sync with reality instead of going stale. For UiPath, one Narrative might lean into its AI partnerships and cloud momentum to justify a higher Fair Value closer to the most bullish target around $17. A more cautious Narrative could focus on competition, FX and SaaS transition risks to anchor Fair Value nearer the most bearish view around $11.71, showing how different stories can lead to very different but clearly framed decisions.
Do you think there’s more to the story for UiPath? Head over to our Community to see what others are saying!
NYSE:PATH Community Fair Values as at Dec 2025
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
