UiPath Inc. (PATH) Stock Valuation — PE Analysis
Software - Infrastructure · NYSE
Current Price
$12.59
PE Ratio (TTM)
20.9x
Intrinsic Value
$14.73
+14.5% margin of safety
COMPETITIVE MOAT
↑Early Mover in Enterprise Automation
UiPath established itself as a leader in the Robotic Process Automation (RPA) market. This early advantage created significant brand recognition and a substantial customer base.
↑Network Effects in Platform Adoption
As more enterprises adopt UiPath's platform, the value increases for all users. This includes a growing ecosystem of developers and third-party integrations.
↑Switching Costs for Enterprise Clients
Integrating UiPath deeply into enterprise workflows creates high switching costs. Retraining staff and reconfiguring complex automation processes is time-consuming and expensive.
INVESTMENT RISKS
↓Dependence on Enterprise Adoption Pace
UiPath's success hinges on the speed and scale of enterprise adoption of its expanding automation ambitions. Slower adoption rates could impact revenue and market share.
↓Technological Disruption in AI
Rapid advancements in AI could lead to new, more efficient automation solutions that bypass UiPath's current platform architecture. This poses a long-term threat to its competitive edge.
↓Valuation Sensitivity to Growth Expectations
The stock's valuation appears sensitive to growth expectations, particularly around its AI strategy. Any earnings test or missed ARR targets could lead to significant price volatility.
Base case
PATH base case PE valuation
At a current price of $12.59, the base case PE valuation puts PATH fair value near $14.73 per share. That figure assumes 8.4% yearly earnings growth, a target PE multiple of 20x, and a 10% discount rate.
Intrinsic Value
$14.73
Margin of safety
+14.5%
Expected annual return
+3.2%
Base case assumptions: 8.4% annual earnings growth, 20x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the PATH PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for UiPath Inc. respond.
Open PE Calculator for PATHCompany Overview
UiPath Inc. delivers a comprehensive automation ecosystem, specializing in Robotic Process Automation (RPA) solutions, with a significant presence in the United States, Romania, and Japan. The company's integrated software suite empowers organizations to design, administer, execute, interact with, evaluate, and oversee their automation initiatives. This robust platform seamlessly blends artificial intelligence with features such as desktop activity recording and in-depth analysis of both human actions and system logs. Through intuitive visualization tools within a centralized portal, users can effectively discover, analyze, and identify processes ripe for automation. It provides low-code development environments, enabling personnel across an organization to create both human-assisted and fully autonomous automations without needing prior programming knowledge. These automation bots can be deployed for interactive use or run independently in the background, leveraging native connectors for integration with common line-of-business applications. UiPath also offers centralized tools for managing, testing, and deploying automations and machine learning models enterprise-wide, and supports the orchestration of complex, long-running processes that coordinate work between robots and humans. Moreover, the platform allows users to track, measure, and forecast automation performance, assisting businesses in ensuring compliance with industry standards. Beyond its core technology, the company provides essential maintenance and support services, along with professional services like training and implementation to facilitate smooth platform adoption. UiPath's diverse clientele includes entities in banking, healthcare, financial services, and government. Founded in 2005, UiPath Inc. maintains its headquarters in New York, New York.
Financial Metrics — PATH PE Stock Valuation Data
PE Ratio (TTM)
20.9x
PEG Ratio
0.01
Earnings Yield
4.97%
ROE (TTM)
17.3%
Revenue/Share (TTM)
$3.19
Debt/Equity
0.04x
Frequently Asked Questions
What is the PE ratio of PATH?
The trailing twelve-month PE ratio of PATH reflects how much investors pay per dollar of UiPath Inc.'s earnings. This metric is most useful when compared to Software - Infrastructure peers and the company's own historical range.
Is PATH overvalued based on PE ratio?
PATH's PE of 20.9x combined with a PEG ratio of 0.01 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Software - Infrastructure, a DCF analysis may be more appropriate.
How do I value PATH stock using PE ratio?
To value UiPath Inc. using PE: (1) Compare the current PE (20.9x) against the Software - Infrastructure median to assess relative pricing, (2) check the PEG ratio (0.01) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of PATH?
PATH's PEG ratio is 0.01, calculated by dividing the PE ratio (20.9x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for PATH stock valuation?
PE ratio gives a quick relative read — how PATH is priced versus Software - Infrastructure peers. DCF provides an absolute value based on projected free cash flows. For PATH, with a strong ROE of 17.3%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See PATH DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Technology valuationsP/E and DCF value PATH with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.